CIMA F2 Syllabus D. Integrated reporting - Six Capitals - Notes
Six Capitals
So these are the resources and relationships of the business (we use these as inputs)
Then the organisations activities convert them to outputs - which will increase / decrease these capitals
< IR > defines six capitals, however, not all capitals are equally relevant or applicable to all organisations
< IR > is not required to adopt the six categories or be structured in line with the capitals
Instead the capitals act as a guideline to ensure organisations consider all forms of capital they use or affect.
Six CAPITALS:
Financial - eg, debt, equity or grants
Manufacturing - buildings, equipment, infrastructure - roads, bridges
Human - people’s competencies, capabilities
Social - shared norms, common values and behaviours,
Intellectual - eg intellectual property (patents, copyrights, software, licences
Natural - air, water, land, minerals, Biodiversity, eco-system