The Accounting Standards Board (ASB) has published reporting standards for the newly-introduced Operating and Financial Reviews (OFRs).
However, of the 90-page report, only four directly deal with reporting on employees, which will cause further disappointment for those in the HR sector.
Many in the HR profession believed that OFRs would provide a route to include meaningful people data in company reports. However, the regulations, which came into force last month, largely ignored human capital reporting.
The standards set out a framework of the main elements that should be disclosed in OFRs, leaving it to directors to consider how best to structure their review.
The report loosely states that directors will need to consider their employment policies and practices, and to assess which aspects are relevant to gain an understanding of the company.
It states: “For example, [assess] the degree to which the human resources of the entity represent a significant competitive advantage or are critical to a key product, service or process.”
Ian Mackintosh, chairman of the ASB, said that OFRs should be regarded as an opportunity for directors to present a clear and balanced analysis of the strategic position and direction of their business.