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Perspectives On Disclosing Human Capital Into The Notes Of The Financial Statements

Author

Listed:
  • Rossen Petkov

    (Lehman College, City University of New York, New York, USA)

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 addi-tion, 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 cap-ital, information on acquisition and retention, learning and development. In addition, organizations need to provide details on the effectiveness and performance of their human capital management poli-cies and practices. The reporting is to be accomplished with the use of a mix of quantitative and qualitative data.

Suggested Citation

  • Rossen Petkov, 2010. "Perspectives On Disclosing Human Capital Into The Notes Of The Financial Statements," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 29-40, november.
    • Handle: RePEc:aic:journl:y:2010:v:57:p:29-40
    as

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    File URL: http://anale.feaa.uaic.ro/anale/resurse/rossen_petkov%20-%20FEAA%20-%20Final%20version.pdf
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    File URL: http://anale.feaa.uaic.ro/anale/ro/Arhiva%202010n-Petkov/345
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    References listed on IDEAS

    as
    1. Roslender, R. & Dyson, J.R., 1992. "Accounting for the worth of employees: A new look at an old problem," The British Accounting Review, Elsevier, vol. 24(4), pages 311-329.
    2. Pfeffer, Jeffrey, 2001. "Fighting the War for Talent is Hazardous to Your Organization's Health," Research Papers 1687, Stanford University, Graduate School of Business.
    3. Meer-Kooistra, Jeltje van der & Zijlstra, Siebren M., 2001. "Reporting on intellectual capital," Research Report 01E50, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    4. repec:dgr:rugsom:01e50 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    human capital; financial notes disclosure; internally generated intangible assets; disclosure framework; compulsory indicators;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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