Financial capital (integrated reporting)
Financial capital is funding available to support an organisation’s activities in the integrated-reporting context. Its sources can include financing and resources generated by operations. Explain how funding supports other resources and outcomes; this category is different from financial capital maintenance and should not automatically be read as accounting equity alone.
Worked example
A business borrows to improve its delivery facilities. The finance enables investment, while the loan remains a liability under the accounting requirements.
Common mistake
Do not treat raising finance as creating profit or equate this resource category only with ordinary share capital.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |