Revistes Catalanes amb Accés Obert (RACO)

Human capital information in management reports: an analysis of compliance with the characteristic of the relevance of disclosure

Ainhoa Saitua, Eneka Albizu, Lorea Andicoechea


Purpose: The aim of this paper is to assess the compliance with the characteristic of
the relevance of disclosure in Management Reports, particularly dealing with Human
Capital (HC) information.
Design/methodology/approach: We codify all instances where narratives of IBEX-35
stock index companies over a five year period in Spain comply with the
recommendations for a “high quality” Management Commentary (MC) in terms of the
relevance characteristic of the information disclosed (IASB, 2005).
Findings: The analysis results show that a greater quantity of information about HC in
terms of the number of pages devoted is not always indicative of higher quality in terms
of relevance if we look for the application of IASB recommendations.
Research limitations/implications: Further research could assess compliance with
other qualitative characteristics required by other standards or guidance that were
internationally accepted.
Practical implications: Among the areas that require improvement in HC disclosures
we highlight forward-looking information.
Social implications: We propose that an internationally accepted agreement must be
struck to unite all the efforts that are being made to improve narrative information in
the MC section, and specifically with reference to HC.
Originality/value: This work compiles the HC disclosures identified as best practices
that may serve as a reference to other companies.

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