What do you meant by human capital, Accounting Standards

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Question 1:

Businesses have become increasingly aware of the environmental implications of their operations, products and services.

(a) Describe why businesses should be concerned about environmental issues.

(b) Explain how businesses would establish which environmental issues affect them.

Question 2:

The recognition of human capital by modern businesses has led to the development of Human Resource Accounting (HRA).

(a) What do you meant by human capital and describe how it has been recognised as important to businesses.

(b) Define HRA and state the main reasons that led to its development.

(c) State implications if businesses fail to recognise Human Capital.


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