A Recommendation On Accounting Human Capital Assets

Abstract

Accounting has been classifying and recording all data related to transactions creating changes on assets and total liabilities and equity of business. Accounting has also roles of assisting managers for making decisions and of serving real, comparable, clear and in time information to outside and inside. Besides, one of most important assets of businesses is labor, in other words, human capital. However, it is not quite possible to able to see human capital asset in balance sheets. In this study, it was explained that human capital assets should be shown in balance sheets as cost factor and its expense process.