BFA605 Case Study: Evaluating Human Capital as a Recognizable Asset

This case study, prepared for the BFA605 course, examines the question of whether human capital should be recognized as an asset. The introduction defines assets and their importance in organizations, differentiating between tangible and intangible assets. The case study then delves into the complexities of recognizing human capital, discussing whether it fits the criteria of an asset and addressing contradictions against its recognition. The author presents their perspective, advocating for human capital as a valuable asset, highlighting employees' skills, experience, and education. The analysis further explores the varying levels of human capital within organizations, such as different certificate levels. The conclusion summarizes the key arguments, emphasizing the significance of human capital for organizational effectiveness and future success. The study includes references to relevant academic articles to support the arguments presented. The case study is a response to a scenario where the author is asked to present their views on the topic for a television news program.

BFA605 CASE
STUDY

TABLE OF CONTENTS
• Introduction
• Meaning of asset
• Human capital is recognised as an asset or not?
• Contradiction against human capital
• Perspective for human capital as an asset for the organisation
• Conclusion
• References

INTRODUCTION
• An asset can be defined as the resource that contains
the economic value that is controlled by the individual,
organisation or a country.
• A major benefit of gathering asset in an organisation
that enhances business enterprise to gain several profits
in the upcoming future.
• Moreover, the asset of an organisation is recorded in a
balance sheet of an organisation.

MEANING OF ASSET
• In an organisation, the majority of items are
recognised as an asset because their value is owned
by the owner and management of a corporation.
• It undertakes several tools such as physical or
tangible goods, vehicles, employee’s real estate,
computer, furniture and many more.
• Also, intangible goods are recognised as an asset for
a business such as copyright, patents and trademark.

HUMAN CAPITAL IS RECOGNISED AS AN ASSET OR NOT?
• Today most businesses are performing their
work at the global level, therefore, they need
to manage their asset(Himick, 2015).
• In the context of human capital they work as
an tangible asset for an organisation,
therefore, it is complex for them to get
recorded in the balance sheet.
• Further, it undertakes various skills such as
intelligence, health and so on so as to
complete their work in a specified period.

CONTRADICTION AGAINST HUMAN CAPITAL
• Human capital and economic growth for
a country are separate from each other.
• It governs that education system which
is developed and implemented by a
developed country is different from
under developing nations.

PERSPECTIVE FOR HUMAN CAPITAL AS AN ASSET FOR THE
ORGANISATION
• In my views this can be considered that, a human is the best asset for the organisation. It signifies employees
are working as an asset through implementing their values, skills, education and work experience.
• The Tony’s article is the best example of the human capital that can be used as an asset as this helps in
maximising the performance of the company.
• In my views this can be seen that two different business enterprise compete with each other on all types of
asset. But in the context of the human asset they are divided into different types which is mention as follow:
• Certificate level in which individual practices of completing work in a few periods of months. In most of
the organisation, it is more diversify like ground-level employees are recruited on the percentile of their
certificate.

CONCLUSION
• In the end, by monitoring the above facts
it is concluded that human capital is the
best asset for the organisation.
• Asset leads the organisation to complete
their work effectively in the present
scenario as well as for upcoming future
through including them in operation and
functional level.

REFERENCES
• Himick, D., 2015. Human depreciation accounting and the emergence of
industrial pensions: Linking human assets to the firm. Accounting, Auditing &
Accountability Journal, 28(2), pp.242-262.
• Wang, T., He, G.S., Zhou, Q.L., Gao, J.Z. and Deng, L.J., 2018. Designing a
framework for marine ecosystem assets accounting. Ocean & coastal
management, 163, pp.92-100.

THANK YOU