Including holding gains as a component of profit reflects a financial capital view.

Question

Quizplus · Accepted Answer

Holding gains are changes in the value of assets or liabilities that are not a result of their use or consumption during the period. Including them in the calculation of profit reflects a financial capital view, which focuses on changes in the value of the company's assets and liabilities.  This is in contrast to an operating view, which focuses on the company's cash flows from its operations.

Including Holding Gains as a Component of Profit Reflects a Financial