Off Balance Sheet Assets

• In Event: SESSION 2D: Financial Accounting and Reporting

Abstract

The revised definition of an asset by the FASB and GASB gives way to the recognition of the fair value of another off-balance sheet value. Interest in recognizing workforce replacement cost and human capital as an asset of the organization has grown out of dissatisfaction with traditional financial accounting and reporting directed toward manufacturing, trading of goods, and service activities which ignore the organizational asset values based on knowledge, expertise, and technology. The growing interest in human capital (HC) and knowledge management reflects an awareness of the need for identification, utilization, and measurement of an organization’s most valuable asset. This paper identifies the importance of the HC value, discusses the research emphasis placed on it by others, and develops a fair value measurement model.

Authors

• Mary Fischer, University of Texas-Tyler

• Treba A Marsh, Stephen F. Austin St University