Human Capital be included in the Financial Balance Sheet - Accounting and Finance Assignment Help

Assignment Task:

You will hear the most firms say: “people are our greatest asset”. However, they are rarely recorded as such in the balance sheet. Whilst human capital is not commonly recognised in the balance sheet, clearly there are some economic benefits to be obtained from the skills and attributes of certain individuals. Prior literature shows that human capital has become a significant factor determining the success of an organization and superior human capital is associated with better firm performance (Crook et al., 2011). You as an accountant, based on your interpretation of the Accounting Standards and Conceptual Framework, discuss “should human capital be included in the financial balance sheet?” 

Some research papers have been provided that may be helpful. You may use these references in your submission if you choose, but are also encouraged to research more broadly and find your own references. 

Required: 

1. Prepare a discussion and address the question: “should human capital be included in the financial balance sheet?”. In your response you should address both sides of the argument (with appropriate references), before coming to your own conclusion. Please write the discussion in a professional manner and you may use accounting terminology.

Note: please paraphrase your arguments, do not directly copy the arguments from research papers or online materials (which may lead to plagiarism and a breach of academic integrity).

2. Your discussion should be referenced appropriately. References should be provided both in-text and as a post-script to your discussion.

3. Your discussion must not exceed 1,500 words (including references). 

You will then be required to provide feedback to two or three of your peers, based on the rubric provided. You will be assessed on both your original submission and on the quality of your feedback, which will be evaluated by the teaching staff.

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