陶婉鈺

Abstract：With the transformation of the industrial structure, knowledge-intensive enterprises have gradually grown. The accounting system should adapt to changes in the times and make adjustments and changes. The human resources of professional talents in intellectual organizations should be reclassified as intangible assets.

Key words：Human Resources；knowledge-intensive organizations；IFRS；intangible assets

Introduction

Nowadays, the industrial structure is updated ceaselessly. It is worth noting that Human resources play an important role in knowledge-intensive organizations in the new economy. In order to reflect the value of human resources, accounting system needs to be adjusted. When human resources can improve the company's net present value relative to competitors, it can be regarded as an asset (Butt, 2013). Therefore, only human resources that can promote the future development of company, namely the human resources of professional talents, can be regarded as assets. The purpose of this essay is to prove that the human resources of professional talents in knowledge-intensive enterprises meet the definition of intangible assets based on IFRS.

Main body

First, the IAS 38 definition of an asset is: 'a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity’ (IFRS, 2019).

On the one hand, the ownership of human resources belongs to the employees themselves, but it is controlled by the company. Due to the employment relationship, the company's use and control of human resources are guaranteed. The company pays employees' salaries and other expenses; employees provide the company with knowledge, skills and other human resources. Contracts are legally enforceable, so the company can effectively control human resources and has the right to hire and fire employees. Because professional talents are hired for a long time, their employment relationship is stable. In addition, human resources be acquired at a certain cost.

On the other hand, the core of the existence of knowledge-intensive enterprises is knowledge rather than material or financial capital (Becker&Matthew, 2009). In the process of production, human capital can be combined with labor materials, and finally form finished products with technology or knowledge to create economic benefits for enterprises. Unlike random events, such as buying a lottery ticket with a very low winning rate. Enterprises arrange production in a planned way according to the law of actual market demand. Therefore, the company's finished products are likely sold; its economic benefits are likely to flow into the enterprise.

Then, IAS 38 defines intangible assets as: non-physical identifiable non-monetary assets, its costs can be measured reliably (IFRS, 2019).

First, according to the definition of human resource, it is a kind of labor resource with human as its carrier. Similar to patent rights, can only be perceived from the concept.

Secondly, the human resources can be identified. The human resources of professional talents can be separated or divided from the company, and can be sold, transferred, leased or exchanged with relevant contracts. Human resources belong to workers. Companies spend costs to ‘buy’ their control. If an entity purchases an intangible asset, the asset is separable and identifiable (Maynard, 2017). Employees and companies can be separated if the labor contract is terminated, which can also prove that human resources can be separated from the company.

Next, the cost of human resource can be measured reliably. There is no doubt that companies need to spend capital to acquire, train and retain these valuable employees (Butt, 2013). The process of human resource acquisition and use will incur costs and consumption，which are reflected in monetary form, so they can be reliably measured. For example, the company pays remuneration to workers on a regular basis, and the company bears vocational training fees, etc.

Conclusion

The human resources of professional talents in knowledge-intensive enterprises meet the definition of intangible assets based on IFRS. It should be reclassified as intangible assets in the balance sheet

Reference

[1]Becker, K.&Matthews, J. (2009). Human Resource Management and Innovation: What are Knowledge Intensive Firms Doing? [Online].Available from: http://eprints.qut.edu.au/27157/1/CINet_09_-_Jorgensen.pdf.

[2]Butt,S. (2013). HOW TO BRING HUMAN RESOURCE ASSET INTO BALANCE SHEET without disturbing any financial accounting standards. [Online].Available from: www.penseejournal.com

[3]IFRS.(2019). International accounting and financial reporting standards.[Online].Available from: www.ifrs.org.

[4]Maynard,J.(2017).Financial accounting, reporting&analysis. United Kingdom: Oxford University press