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Word count must be:1600 References should be there, incite references too Applying the accounting standards You will hear the most firms say: people are our
Word count must be:1600 References should be there, incite references too Applying the accounting standards
You will hear the most firms say: "people are our greatest asset". However, they are rarely recorded as such in the balance sheet. Whilst human capital is not commonly recognised in the balance sheet, clearly there are some economic benefits to be obtained from the skills and attributes of certain individuals. Prior literature shows that human capital has become a significant factor determining the success of an organization and superior human capital is associated with better firm performance (Crook et al., 2011). You as an accountant, based on your interpretation of the Accounting Standards and Conceptual Framework, discuss should human capital be included in the financial balance sheet?" Some research papers have been provided that may be helpful. You may use these references in your submission if you choose, but are also encouraged to research more broadly and find your own references. Required: 1. Prepare a discussion and address the question: "should human capital be included in the financial balance sheet?". In your response you should address both sides of the argument (with appropriate references), before coming to your own conclusion. Please write the discussion in a professional manner and you may use accounting terminologyStep by Step Solution
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