Financial Operations Ratio-meaning and formula

Revision question on IASB conceptual framework ( capital maintainanance)

According to the IASB Conceptual Framework, the concept of capital maintenance is concerned with how an entity defines the capital it seeks to maintain. The concept of capital gives rise to financial capital maintenance and physical capital maintenance. The selection of the appropriate concept of capital by an entity should be based on the needs of the users of its financial statements.

Required:

Distinguish between financial capital maintenance and physical capital maintenance.

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