Humanity: the measurable resource

Article Abstract:

Expenditures on human resource development are currently treated as an overhead cost by most firms. A case can be made for treating human resource development expenditures as a capital investment on the firm's balance sheet. Capitalization of human resource expenditures can be made to fit the Financial Accounting Standards Board definition of an asset. Human resource investment could conceivably be capitalized as purchased goodwill under Statement of Standard Accounting Practice 22 in the case of acquisitions. Human resource investment displays the characteristics of development expenditures as defined in fundamental accounting concepts. Professional accounting associations are beginning to discuss the idea of permitting the deferral of expenditure on intangible assets to match future revenues. Valuing people in a manner similar to the physical and financial assets of a firm would lead to a more effective measurement of training and development costs and benefits.

Human resource management, Employee training, Human capital

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Let the message dictate the medium

Article Abstract:

Guidelines for producing annual reports are discussed, using guidelines from recent reports issued by British corporations. There is a growing trend toward lavish presentations that look and read like magazines, but the design of the report should never interfere with the presentation of information. Reports should include a financial highlights section in which the year's results are briefly reviewed, a financial calendar showing when dividends will be sent and the year's events, details of the directors of the company and their activities, an index, and an analysis of sales and profits by product and geographic area. Graphs and charts should be used to supplement financial figures, rather than as a substitute.

Corporation reports, Company reports

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Computer leasing is different

Article Abstract:

The financial personnel of a company leasing computers must do more than ensure that the agreement complies with Statement of Standard Accounting Practice 21. Issues to be addressed are equipment obsolescence, and capacity planning. The ideal lease should account for the possibility of early termination and provide a rebate of the proceeds from the resale of equipment. The market value of the computer and the outstanding rentals of the lease should parallel one another as closely as possible. The computer lessor should be chosen carefully, with special attention to the lessor's financial strength, resale ability, and refinancing terms.

Computers, Contracts, Leases, Computer leasing

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