GuestCapital Maintenance
Source: Conceptual Framework under Ind AS (summary)
Under financial capital maintenance, profit is earned only if closing net assets exceed opening net assets after excluding distributions to and contributions from owners. Under physical capital maintenance, profit is earned only if the physical productive capacity at the end exceeds that at the start.
Typing details
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About Accounting
Accounting principles in short, plain-language summaries: double entry, accrual, going concern and prudence, then Ind AS topics such as inventories, cash flows, events after the reporting period, income taxes, property, plant and equipment, employee benefits, government grants and foreign currency.