Accounting for Human Capital: Is the Statement of Financial Position Missing Something?

Oseni, Abubakar Idris, Igbinosa, Peter E.


Human capital has become a significant factor in the success of organizations and is often regarded as one of the most valuable assets of corporations. This paper explores the current view point on whether or not human capital should be accounted for on the statement of financial position. Related literatures were reviewed conceptually in the course of this study. The paper concluded that major item is missing in the statement of financial position i.e. human capital as a result of the difficulty encounter in measuring human capital and the value of human capital is very subjective. The paper recommended that human capital should be valued, but perhaps the financial statements are not the proper place for such a number. It might be a good idea to have a separate human capital report that would provide statistics and other facts about a company’s stock of human capital.


 Keywords: Human Capital Accounting, Measuring, Statement of financial position, Valuable assets

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ISSN 2408-770X (Print Version)

ISSN 2408-6231 (Online Version)