Human Resources Executive | Total Rewards Leader | Transformation and Service Delivery | GBS and Captive Shared Services
Financial accounting plays a crucial role in assessing company performance, but it falls short in capturing the true value of human capital. Despite the immense contribution of employees, accounting rules overlook them as assets, impacting how companies are perceived by investors. In the U.S., employees and investments in them are classified as expenses or liabilities instead of assets. With minor adjustments to reporting standards, as recommended in this article, this can be addressed effectively, leading to significant positive outcomes.