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Power from the People

Can human-capital financial statements allow companies to measure the value of their employees?

November 1, 2011

If a company's most important assets are indeed its people, as corporate executives parrot endlessly, that's news to investors, analysts, and even, as it turns out, many companies.

It is hardly a secret that the industrial economy that prevailed for two centuries has evolved into a talent-driven, knowledge-based economy. Still, extant accounting standards define "assets" mostly in terms of cash, receivables, and hard goods like property, equipment, and inventory, even though the value of many companies lies chiefly in the experience and efforts of their employees. Read more...

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