Human Capital: Recognition and Reporting

Abstract

This discussion provides the definition, background, types, and categories of the business entity’s human capital workforce. Investors, business regulators and other stakeholders believe human capital has value that should be measured and disclosed on the entity’s financial statements. Various means to determine human capital value are identified and discussed. together with available disclosure guidelines. Support for reporting human capital values on the entity’s financial statement is presented together with information about why human capital should not be reported. Investors, stakeholders, and other financial statement users’ perspective regarding the availability of human capital value information are presented with the reporting framework.