Financial statements failing to measure human capital, diminishing their usefulness.
Financial statements currently do not properly report human capital, which is crucial for creating value in companies. This study emphasizes the importance of disclosing and measuring human capital in financial statements. By recognizing human capital as an investment, the analysis of financial statements can be more accurate, especially for high-tech and service-oriented companies. Properly accounting for human capital can lead to better decision-making for investors, creditors, and researchers.