The Framework recommends that capital is conceptualised as the invested money or the invested purchasing power of the entity.

Question

Quizplus · Accepted Answer

The Framework for Financial Reporting views capital as the net assets or equity of the entity, not just the invested money or purchasing power. It encompasses a broader perspective, including all resources contributed to the entity by its owners and the results of its operations.

The Framework Recommends That Capital Is Conceptualised as the Invested