The Financial Reporting of Human Resource Valuations

Employees have long been recognised by managers as being of substantial economic value to an employing organisation, yet traditionally that value has been ignored in the accounting systems of those organisations. In the past decade scrious consideration has been given to the valuation of human resources in a manner that would fall within the constraints currently affecting the financial disclosure policies of business entities. This paper focuses atten tion on the parallel between human resources and leascd resources, and notes certain implications for the disclosure of the value of a certain group of human resources.