CASE STUDY 2

Manypeoplepointedoutthatitisverydifficulttovaluehumanresources. Some others have cautioned that people are sensitive to the value others placeonthem.Amachineneverreactstoanoverorunder-valuationofits capacity, but an employee will certainly react to such distortion. Conventionally human resources are treated just as any other services purchased from outside the business unit. As a result conventional balance sheets fail to reflect the value of human assets and hence distort the value of the business. The treatment of human resources as assets is desirable with a view to ensuring comparability and completeness of financial statements and more efficient allocation of funds as well as providing more useful information to management for decision-making purposes. Human resources information of a particular company are mentioned in belowtable.

Skille d Semi- Url Particulars Skilled Skilled Annual average earning of an employee till the retirement age 90000 62000 37000 Age of retirement {Years} Discount rate No. of employees in the group Average age [Years]