Perspectives on disclosing human capital into the notes of the financial statements
Perspectives on disclosing human capital into the notes of the financial statements

Summary/Abstract: This paper argues that a disclosure-only approach provides a better means of incorporating human capital information into the financial statements. The express purpose of the financial notes is to allow an informed assessment of the company’s operations, financial position and future business strategies and prospects. We show that the current accounting framework under IFRS, specifically IAS 1, could accustom the disclosure of human capital into the notes of the financial statements. In addition, we identify the key compulsory indicators that organizations need to disclose into the notes to the financial statements. These indicators include the short and long term strategies related to human capital. In addition, organizations need to provide details on the effectiveness and performance of their human capital management policies and practices. The reporting is to be accomplished with the use of a mix of quantitative and qualitative data.

• Details
• Contents