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What is the difference between Financial concept of capital and Physical concept of capital according to IASB Framework?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/01/29
MOHAMMAD SARFARAZUL HASSAN
by MOHAMMAD SARFARAZUL HASSAN , Financial Analyst , Spectra Support Services

Under financial concept of capital :-, a profit is earned only if the amount of net assets at the end of a period exceeds the amount at the beginning of the period, excluding any inflows from or outflows to owners

 

 

Under physical concept of capital  :- Physical capital" refers to fixed capital, any kind of real physical asset that is not used up in the production of a product is distinguished from circulating capital.

Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

: MOHAMMAD SARFARAZUL HASSAN   has given a good answer

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