According to the International Integrated Reporting Council, what constitutes financial capital?

Financial capital, as defined by the International Integrated Reporting Council, encompasses a broad spectrum of resources that an organization can utilize to create value and support its operations. It includes the funds available for production and the provision of services. This definition is significant because it emphasizes the operational capacity of an organization to generate economic outcomes using its available resources.

Choosing funds available for production and the provision of services acknowledges that financial capital is not limited to just cash reserves or specific assets. Instead, it reflects a more holistic view that includes other monetary assets that can be leveraged in various financial activities, such as investments, loans, and revenues.

While cash reserves, real estate, and investments in non-profit initiatives may contribute to an organization's financial standing, they do not comprehensively capture the essence of financial capital as described by the International Integrated Reporting Council. Instead, focusing on funds available for operational activities provides a clearer understanding of how organizations utilize financial capital to drive their economic performance.