prof rachel baskerville s capital maintenance contribution prof baskerville you are not allowed on wikipedia to qoute yourself it is called conflict of interest this is a wikipedia policy i may quote or add comments from your excellent work to wikipedia but you cannot do it yourself your contribution which is a direct quote from your ssrn publication is also not encyclopedic as they say over here on wikipedia i also disagree with what you are stating we can discuss this matter here on this discussion page as it is normally done on wikipedia i appreciate that you are new on wikipedia and that you are a well known and top of the class academic herewith then the contribution from prof baskerville that i removed from the article this the iasb framework describes as above how capital maintenance is undertaken in two ways firstly a financial concept of capital is adopted by most entities in preparing their financial statements under a financial concept of capital such as invested money or invested purchasing power capital is synonymous with the net assets or equity of the entity so most entities undertake to report that they have maintained their financial capital and do not report physical capital maintenance secondly you may find some public sector entities consider that their stewardship responsibilities are best served by also reporting physical capital maintenance e g is the capacity of the waterworks waste water system etc in the local town the same as or better than it was last year some key performance indicators kpis will be chosen to report this the framework states under a physical concept of capital such as operating capability capital is regarded as the productive capacity of the entity based on for example units of output per day these are two concepts of capital thirdly and this is confusing a legal meaning in the uk arose as follows english law developed the doctrine of capital maintenance with the aim of ensuring that a company cannot return its share capital back to its shareholders as dividends the doctrine of capital maintenance underpins the legal rules addressing tabpayment of dividends to shareholders tabreduction of a company s share capital or reserves taba company s purchase of its own shares and other aspects from october private companies in the uk will be allowed to reduce their share capital without the need to go to court so when a commercial lawyer is discussing capital maintenance they may be referring to this third concept baskerville rachel f questions and answers about ifrs january available from ssrn i will still add my points of disagreement with prof baskervilles contribution