Discussion Topic

Dana Corporation included the following in its 2001 financial report:

Foundation Business: Focused Excellence

Danas foundation businesses are: axles, drive shafts, structures, brake and chassis products, fluid systems, filtration products, and bearing and sealing products.

These products hold strong market positionsnumber one or two in the markets they serve. They provide value-added manufacturing, are technically advanced, and each has features that are unique and patented.

Management Statement (in Part)

We believe people are Danas most important asset. The proper selection, training, and development of our people as a means of ensuring that effective internal controls are fair, uniform reporting are maintained as standard practice throughout the Company.

Dana states We believe people are Danas most important asset. Currently, generally accepted accounting principles do not recognize people as assets.

Speculate on why people are not considered assets. Do you agree or disagree with this consideration?

Speculate on what concept of an asset Dana is considering when it states We believe people are Danas most important asset. How does this compare to other, traditional asset types? How could people as assets be included on a balance sheet?

Suppose people could be thought of as assets according to GAAP. How would that affect typical accounting calculations?

In your peer responses, explore what other non-traditional assets a company might propose.