Six capitals (integrated reporting)
The six capitals classify resources and relationships relevant to value: financial, manufactured, intellectual, human, social and relationship, and natural. They help explain interactions and trade-offs, rather than form six financial-statement balances. Their relevance varies, and the framework does not require every organisation to structure its report around these headings.
Worked example
Training uses financial resources while developing workforce capability; a production change can improve margins while affecting water use. The report explains material connections.
Common mistake
Do not add all capitals together as one monetary total or assume each must be recognised as an accounting asset.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |