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متابعة

Why isn't a key employee reported as an asset on the balance sheet?

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تم إضافة السؤال من قبل Abdul Qayyum Mohammed , Sales And Marketing Manager , Zafar Naji Al-Muthlaq Contracting Establishment
تاريخ النشر: 2014/09/22
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Key Employee is really an asset to the company.

You can only value add...a day will come...

(Company cannot exchange a key employee for value nor provide for Depreciation)

Ayman Esa Mustafa Farrag
من قبل Ayman Esa Mustafa Farrag , مدير مالي , شركة الصفوف

I think that the phrase 'people as our greatest assets' is an overrated and overused cliche. People are a very important part or our organization and they are resources that require management and nurturing. People also do not 'belong to' the firm as they are free to leave. By definition an asset is expected to depreciate in value, diminishing it's future ability to add value to the firm. With people in organisations we expect their future value to increase through experience and training. The net effect to the bottom line is inherent in the BS through higher profits. On the other hand, would a sports club report its players as assets and as players age, would their value diminish in the balance sheet? I think that the triple bottom line reporting structure should be inter related; I.e the correlation between CSR and company performance. Non economic metrics are good to monitor as they are leading performance indicators and as Jim mentions in his post, good CEOs will spot the expenditure that will maximize future ROI.

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

 I agree with Mr. answer VENKITARAMAN 

 

 

Khaled Mohee Eldeen Abbas Mahmoud
من قبل Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

in addition to the fellows' answers a useful life end of a key employee cannot be  estimated to calculate depreciation....!!

FITAH MOHAMED
من قبل FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

Because it does not apply to assets specifications 

* - Can not determine its useful life 

* - Can not owning 

* - Can not estimate its services

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