concept
noun

an idea

Usage
concept of capital maintenance
the idea that profit is only recorded if the capital of the company, measured in terms of its net assets, increases during an accounting period. assets can be measured at historical cost or in units of constant purchasing power.
Usage
concept of maintenance of operating capacity
the concept of capital maintenance measured in terms of the changes in the current values of fixed assets, stock and working capital. Profit can only be taken if the total value of these assets, called the 'net operating assets', including adjustments for changes in prices affecting these assets, increases during an accounting period.
Browse by Subjects
accounting concept
conceptual framework
interest rate differential (IRD)
capital maintenance concept
stakeholder
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