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For an item to be an intangible asset, one of the condition is that it must be controlled by the entity i.e economic benefits associated with it. employees skills are normally considered as uncontrollable i.e employees can leave at any moment. having said that, if there is a binding contract between employer fand employee, say for one year, before that the employee can not leave the office, will now the skills of the employee be recognised as an intangible asset?
If an employee's skills are intangible assets, they are closely related to a tangible asset, namely the entity and the presence of the employee. This means referring to the employee's nature and behavior and the need to elect good behaviors in the selection of management staff until we reach the highly skilled employee.
The Companies Act 2006 (c 46) is an Act of the Parliament of the United Kingdom which forms the primary source of UK company law.
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