Issue Information ‐ TOC

Published date01 October 2016
DOIhttp://doi.org/10.1002/jcaf.22236
Date01 October 2016
VOLUME 27, NUMBER 6 • September/October 2016
The Journal of
Letter From the Editor
James B. Edwards
Features
Your Best Performance Measure Is the One You Don’t Need
Charles R. Thomas Jr. and Tom Pryor
Much has been written about the recommended use of SMART performance measures …
specific, measureable, attainable, realistic, and timely. While this approach is fundamentally
sound, authors Chuck Thomas and Tom Pr yor propose ideas and present examples of how
organizations are better served by focusing on the improvement of business processes and
corporate culture.
Human Capital: A Strategic Asset Whose Time Has Come to Be Recognized on
Organizations’ Financial Statements
Marc Sollosy, Marjorie McInerney, and Charles K. Braun
This article examines the issue of how organizations value human capital—are they treated
as the intellectual resource within the asset side of the ledger, or are they an expense that
drains the company of cash and risks their competitive advantage? The article will focus on the
idea that the value of the human capital assets should be measure and considered part of the
organizations market value. The exploration of knowledge-based economies has strengthened
the argument for setting value to those producing creative and innovative processes within the
organization. Central to this article is the belief that human capital is an accountable asset that
must be valued on corporate financial statements as Infosys has adopted since 2008. While
some would argue that financial value cannot be attached to labor, this argument does not
seem to be supported in the knowledge-based economy. If an organization’s most valuable
asset is its people, then the argument must be broached that accounting standards (such as
the Financial Accounting Standards Board [FASB] and generally accepted accounting principles
[GAAP]) should keep current with the 21st century. If a true comparison of organizations
takes place, can that comparison ignore its human capital?
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