Human capital refers to the intangible skills provided by people and is an inventoriable cost under ASPE/IFRS.

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Human capital, while valuable, is not an inventoriable cost under ASPE/IFRS. Inventoriable costs refer to the costs of producing and acquiring inventory, which typically includes direct materials, direct labor, and overhead costs directly related to production. Human capital costs, such as training and development, are usually expensed as they are incurred rather than added to the cost of inventory.

Human Capital Refers to the Intangible Skills Provided by People