To guarantee development and growth of any enterprises, the competence of group must be superior in the correct perspective. Without human resources, the other wherewithal cannot be operationally effective. The original health of the enterprises is indicated by the human behavior variables, like group loyalty, skill, motivation and capacity for effective interaction, communication and decision making. Money, materials, machines, methods and men are the wherewithal essential for an enterprises. These resources are broadly classified into two categories, viz., human and physical wherewithal. Men, otherwise known as the human resources, are considered to be animate resource. Others, namely, Money, materials, machines and methods are considered to be inanimate or physical resources. The success or otherwise of an enterprises depends on how best the limited physical wherewithal are utilized by the human resource.

In conventional accounting, human capital is not taken as an asset. But in Corporate Valuations, it is a significant factor. In a knowledge Economy, Human Capital is all that matters.

Valuation depends on future benefits/Cash Flow. Quality of human resources affect the quality of Cash flows. They bring future benefits for a firm. Thus, there is an argument that amount spent on human resource development should not be treated as expense rather capitalized in the balance sheet as assets.

To strategically plan any developmental agenda in an organization or country, knowing or valuation of the human resources is key. The human resources would walk and put into fruition, all the aims and objectives of an organization.

Human resources is the key asset of an organization which maintains its development.

De think that all HR are importante, but it's not real.

Only are important who get the planned goals.

Who don't, aren't important or valious for the organizatión.

I would like to invite you to refer my paper on Knowledge Capital and Earning Estimation Methodlogies. where in i have tried to answer the questions. Thaker K (2002); Relevance of Knowledge capital and earning estimation

methodologies for select companies in India”, DECISION, Journal of IIM Calcutta,

Jan-June 2002 Issue.

1. The value of HR is important because HR is the main asset of the company. 2. The same as other resources when expenditure becomes a cost we must calculate the value obtained from the cost that has been issued 3. The value of HR can be entered as an intangible asset

You can see something about that in the papers:

ALCAÑIZ, L., F. GÓMEZ-BEZARES y R. ROSLENDER (2011): “Theoretical perspectives on intellectual capital: a backward look and a proposal for going forward”, Accounting Forum, 35, págs. 104-117.

ALCAÑIZ, L., F. GÓMEZ-BEZARES y J.V. UGARTE (2015): “Firm characteristics and intellectual capital disclosure in IPO prospectuses”, Academia, revista latinoamericana de administración, vol. 28, nº 4, págs. 461-483.

Alcañiz, L., F. Gómez-Bezares y J.V. Ugarte (2017): “Efficiency in initial public offerings and intellectual capital disclosure”, European journal of finance, vol. 23, nº 12, págs. 1129-1149.

I concur with the observation of Emmanuel V Murray that human capital is not recognized as an asset because its cost cannot be determined with certainty and it is not probable that economic benefits will flow to the entity as a result of human capital. This is one of the best safeguards in traditional accounting as this eliminate arbitrary valuation of assets of an entity since in reality a reporting entity does not control employees - they are free to go even those on bond (sponsored to undertake certain specialized training or qualifications) can simply resign, seek medical leave etc. Its the intellectual property rights i.e. copyrights, patents, designs, logos etch which an entity can own upon satisfying stringent registration processes. In a nut-shell, employees come and go but mission and vision of the entity might endure for a long period of time.

Valuation of Human resources includes customers, employees, suppliers, the public, and even competitors and they are part of the inventory of any organization like profit, nonprofit.

For further reading ref: Achrol RS, Kotler P. Frontiers of the marketing paradigm in the third millennium. Journal of the Academy of Marketing Science. 2012 Jan 1;40(1):35-52.

Regards

Dr. Kamath Madhusudhana

Refer the following that my be helpful:

https://hbr.org/2011/12/why-hr-really-does-add-value

Because Human Resources are the most valuable Assets in a Knowledge Economy.