Should Human Capital be Recognised as an Asset?

Should Human Capital be Recognised as an Asset?

You have been approached by a journalist by the name of Tony Trainer, from the local newspaper. This journalist would like to publish a piece on whether human capital should be accounted for as an asset, and would like your expert opinion, as an accountant, on your interpretation of the Accounting Standards and Conceptual Framework regarding this issue.

Required:
1. Write a letter to Tony addressing the question: “Should Human Capital be Recognised as an Asset?”. In your response you should address both sides of the argument (with appropriate references), before coming to your own conclusion. This letter should in proper letter format, and given that its contents may be published in the local newspaper, should be written in a professional manner. It will be published in the business section of the newspaper so you may use accounting terminology.