Quote:
Originally Posted by tiger_handheld
So here is a question for all the accountants on here...
Do you think anyone has considered capitalizing employees? I mean if you think about it aren't they an asset? The gf was talking about human capital and it brought this to my mind. All the places that rely on human brains would use this wouldn't they? It sounds too good to be true, hence my question to you guys lol...
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asset is defined as:
1) acquired by a prior transaction
2) future benefit to company
3) control over future benefit
(this is totally over simplified from my UFE days many years ago, but it still rings true today, in an over simplified way)
you most definitely do not have no. 3. An asset is, by definition, to be controlled, one cannot control an employee. an employee can quit tomorrow, free and clear, an asset, while it can break down, it cannot leave, nor does it break down 'by choice'
now, if your employee is working on something, say software code, then yes their time can be capitalized relating to that project as the software code is owned, you control it, and it has future benefit...