Human capital
Human capital concerns people’s capabilities, experience and capacity to contribute in integrated reporting. It helps explain how skills, engagement and development support the organisation’s activities and future performance. This does not mean that the organisation owns its people or recognises them as financial-statement assets.
Worked example
A business links staff development and retention to the reliability of its service and its ability to introduce new offerings.
Common mistake
Do not reduce human capital to headcount or claim that every training expense becomes an accounting asset.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |