Brexit and Capital: Difference between pages

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The term 'Brexit' is a combination of '''BR'''itain and '''EXIT''', meaning the exit of the United Kingdom (UK) from the European Union (EU).
Capital has a wide range of meanings, depending on the context.


For example, it may include financial resources, capital goods such as transport infrastructure, and human capital including knowledge, skills and relationships.


A referendum on the issue was held in the UK on 23 June 2016.


The result of the referendum was to advise the UK Government to begin the process of the UK leaving the EU.  
1. ''Financial reporting''. 


In financial accounting, capital is money the business owes the owner.


Depending on the context, 'Brexit' may refer to any or all of:
This is equal to assets minus liabilities (including debt). 


#The decision for the UK to leave the EU.
In other words, the equity.
#The exit itself.
#The consequences, and potential consequences, both of the decision and of the exit itself.
#Less commonly, the referendum result or the referendum date of 23 June 2016.


Equity capital funds the net assets of the business.


== See also ==
It also acts as a buffer to absorb losses or other deficits, to support the business to continue its operations following financial stress.
* [[Article 50]]
 
* [[Brexit Britain]]
 
* [[Cliff edge]]
2. ''Corporate finance''. 
* [[Equivalence]]
 
* [[European Economic Area]]
More broadly in the corporate finance context, 'capital' is the total amount of funding available for the operations of an organisation. 
* [[European Union]]
 
* [[Frexit]]
This includes both its debt and its equity.
* [[Great Repeal Act]]
 
* [[Grexit]]
 
* [[Hard Brexit]]
3. ''Company law''.
* [[Parliamentary supremacy]]
 
* [[Schengen Area]]
More narrowly in company law, 'capital' is the component of the total equity represented by the share capital of the company.
* [[Sovereignty]]
 
* [[United Kingdom]]
 
4. ''Regulation''.
 
In the regulatory capital context, 'capital' means what the particular detailed regulations say that it means.
 
Here as elsewhere, care and consistency in definitions is essential.
 
Regulations and related supervision specify minimum mandatory amounts of capital, held for the protection of direct stakeholders and the wider community.
 
 
5. ''Economics''.
 
'Capital' is one of the 'factors of production' in economics, the others classically being labour, land and enterprise.
 
In this context, 'capital' traditionally referred to the things that have been created to help in the production process, like machinery, factories and transport facilities. These things are sometimes known as 'capital goods'.
 
Human capital, natural capital and social capital are also fundamentally important parts of economic capital.
 
 
6. ''Individual capital''.
 
The valuable and productive longer term resources available to an individual including their knowledge, skills, relationships, physical and financial resources.
 
 
7. ''Sustainability - Forum for the Future''.
 
The Forum for the Future identifies five areas of capital in a model designed as a "framework for sustainability".
 
The five areas of capital in this model are:


*Human capital
*Social capital
*Manufactured capital
*Financial capital
*Natural capital


=== Other links ===
[https://www.treasurers.org/brexit Brexit: ACT Technical Guidance and Comment]


[http://www.treasurers.org/node/326266 Brexit 2016 - a post-referendum checklist for treasurers 2016]
8. ''Integrated reporting - six capitals''.


[http://www.treasurers.org/node/326161 Brexit Painting by Numbers 2016]
Other models and frameworks have additional categories of capital.


[http://www.treasurers.org/node/324106 Brexit - 'T plus 7 days']
For example, the International Integrated Reporting Framework identifies  intellectual capital as a separate form of capital.


[http://www.treasurers.org/brexit Brexit - keep calm and make a plan]
This makes a total of six forms of capital in the integrated reporting framework.


[https://www.treasurers.org/brexit-briefing Brexit: a treasurer's checklist]
In this framework, social capital is described as ''social and relationship'' capital.


[http://www.treasurers.org/node/322569 Brexit - "T minus 7 days"]


[https://blogs.treasurers.org/?p=313877 Stephen Baseby's ACT blog: Brexit: will we, won't we; and what would it mean?]
== See also ==
* [[Assets]]
* [[Book value]]
* [[Capital account]]
* [[Capital adequacy]]
* [[Capital allowances]]  (tax)
* [[Capital asset pricing model]]  (CAPM)
* [[Capital employed]]
* [[Capital expenditure]]  (capex)
* [[Capital gain]]
* [[Capital goods]]
* [[Capital instrument]]
* [[Capital intensity]]
* [[Capital lease]]
* [[Capital management]]
* [[Capital market]]
* [[Capital mobility]]
* [[Capital rationing]]
* [[Capital Requirements Directive]]
* [[Capital structure]]
* [[Capital to labour ratio]]
* [[Capitalisation]]
* [[Capitalism]]
* [[Corporate finance]]
* [[Cost of capital]]
* [[Debt]]
* [[Debt capital]]
* [[Enterprise]]
* [[Equity]]
* [[Equity cost of capital]]
* [[Factors of production]]
* [[Finance]]
* [[Financial asset]]
* [[Financial capital]]
* [[Financial liability]]
* [[Financial markets]]
* [[Financial risk]]
* [[Forum for the Future]]
* [[Funding]]
* [[Human capital]]
* [[Intellectual capital]]
* [[Interest]]
* [[Investment bank]]
* [[Labour]]
* [[Land]]
* [[Liabilities]]
* [[Liquidity]]
* [[Manufactured capital]]
* [[Market value]]
* [[Natural capital]]
* [[Primary market]]
* [[Regulatory capital]]
* [[Return]]
* [[Revenue]]
* [[Secondary market]]
* [[Share capital]]
* [[Six capitals]]
* [[Social capital]]
* [[Working capital]]


[https://www.treasurers.org/node/318447 Further resources]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]

Revision as of 09:58, 28 April 2022

Capital has a wide range of meanings, depending on the context.

For example, it may include financial resources, capital goods such as transport infrastructure, and human capital including knowledge, skills and relationships.


1. Financial reporting.

In financial accounting, capital is money the business owes the owner.

This is equal to assets minus liabilities (including debt).

In other words, the equity.

Equity capital funds the net assets of the business.

It also acts as a buffer to absorb losses or other deficits, to support the business to continue its operations following financial stress.


2. Corporate finance.

More broadly in the corporate finance context, 'capital' is the total amount of funding available for the operations of an organisation.

This includes both its debt and its equity.


3. Company law.

More narrowly in company law, 'capital' is the component of the total equity represented by the share capital of the company.


4. Regulation.

In the regulatory capital context, 'capital' means what the particular detailed regulations say that it means.

Here as elsewhere, care and consistency in definitions is essential.

Regulations and related supervision specify minimum mandatory amounts of capital, held for the protection of direct stakeholders and the wider community.


5. Economics.

'Capital' is one of the 'factors of production' in economics, the others classically being labour, land and enterprise.

In this context, 'capital' traditionally referred to the things that have been created to help in the production process, like machinery, factories and transport facilities. These things are sometimes known as 'capital goods'.

Human capital, natural capital and social capital are also fundamentally important parts of economic capital.


6. Individual capital.

The valuable and productive longer term resources available to an individual including their knowledge, skills, relationships, physical and financial resources.


7. Sustainability - Forum for the Future.

The Forum for the Future identifies five areas of capital in a model designed as a "framework for sustainability".

The five areas of capital in this model are:

  • Human capital
  • Social capital
  • Manufactured capital
  • Financial capital
  • Natural capital


8. Integrated reporting - six capitals.

Other models and frameworks have additional categories of capital.

For example, the International Integrated Reporting Framework identifies intellectual capital as a separate form of capital.

This makes a total of six forms of capital in the integrated reporting framework.

In this framework, social capital is described as social and relationship capital.


See also