(Answered) The idea of incorporating human capital into a balance

Finance

The idea of incorporating human capital into a balance sheet is huge to fathom. There are so many varying aspects which could impact the score or ratio given per employee. Grading, age (closeness to retirement), experience, education, training and salary are just a few. Do you think that if this was documented in a financial statement this should be tied to a ratio of industry standards? Flamholtz, (1972) considers this in his article saying that the ratio should tie to the industry standard and also the standard within the company. Do you agree or disagree with this? If you were to suggest a way to calculate this to present it in a financial statement, how would you suggest proceeding? Would you agree with the valuation equation of Lev and Schwartz outline by Flamholtz, (1972)?

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