September 5th, 2007
Gray matter matters - Insights on Issues - human resources deals with accounting and intellectual property - Brief Article
While HR professionals need to learn the language of business, there is a growing realization that traditional accounting practices leave a lot to be desired.
The value of important intangible assets is not adequately reflected in common basic financial statements. Even the accounting profession, led by far-thinking professors such as Baruch Lev of New York. University’s Stern School of Business, is attempting to stretch the boundaries of accounting concepts to value assets such as copyrights, trademarks, brands and–most importantly for HR–employees.
In today’s era of knowledge-based companies and frequent mergers and acquisitions, getting a handle on the value of people in an enterprise is more critical than ever. This search for the “holy grail” of HR has just begun. But already, many companies are implementing novel calculations to value and manage their human capital.
For a look at this emerging area, Senior Writer Steve Bates talked to leading experts and human resource professionals who are using these new concepts to provide greater insight and guidance to their organizations. His report begins on page 30.