A Conceptual Framework For Evaluating The Impact Of Double Materiality On Intangible Human Capital Accounting Practices

Abstract

The objective of this conceptual paper is to critically examine the interrelationship between financial Disclosures and nonfinancial Disclosures by identifying and addressing the limitations and grey areas of Financial Reporting and NonFinancial Reporting. This involves identifying and analysing the key data points related to intangible human capital accounting within the context of the Business Responsibility and Sustainability Reporting framework—a non-financial reporting standard—and aligning them with the financial data metrics established by the Accounting Standards framework. The study further endeavours to conceptualise the interconnectivity between FR and NFR while evaluating potential methodologies, including a case study approach, to assess the implicationsof the double materiality paradigm on intangible human capital accounting practices, particularly concerning their financial ramifications.