10.10 Assets and asset recognition

For several seasons, Megan Gale and Jennifer Hawkins have been employed by David Jones Limited and Myer Limited respectively in order to attract more fashion-conscious customers to their stores. This strategy has met with some success and their continued employment at fashion events in the future for their respective companies appears assured.

Required : Discuss whether Megan Gale and Jennifer Hawkins should be regarded as assets of David Jones Limited and Myer Limited respectively. Discuss also whether they should be recognised on the statement of financial position/balance sheet of the respective companies as assets.