What question did this study set out to answer?

The aim is to critique the concepts and implications of human capital measurement in financial statements.

On the Use of the Economic Concept of Human Capital in Financial Statements: A Comment.

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This article critiques human capital valuation methods, indicating potential overestimations in financial reports.

The aim is to critique the concepts and implications of human capital measurement in financial statements.
Analyzes the human capital model proposed by Baruch Lev and Ada Schwartz.
Critiques the valuation model for ignoring factors affecting individual service potential.
Evaluates the implications of overstated human capital value in financial contexts.
Highlights that human capital is not inherently embodied in an individual.
Finds that the model may overstate expected service life due to possible individual exits.
Indicates that this overstatement can inflate the perceived value of human capital in financial reporting.

Eric Flamholtz (1972) studied this question.

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