Exploring the HRM/accounting interface on human assets

Abstract

PurposeThis paper seeks is to enhance our understanding of intangible recognition by embracing an artefact‐based approach.Design/methodology/approachThe paper presents an artefact‐based approach to intangible asset recognition, an artefact being a physical and visual representation (typically, documentary) of expended human intellectual and physical creativity. This output orientation (what people create: artefact‐based outputs) is compared to an input orientation (the investment inputs in human “assets”) using artefact‐based asset recognition criteria that have already received some exposure in the marketing literature in respect of brands.FindingsEmphasis is placed on outputs, i.e. what people create, rather than on the more familiar input orientation, which focuses on investments in human assets. When compared to an output orientation, the more familiar input orientation is an unsatisfactory basis on which to recognise human assets.Practical implicationsThe asset recognition criteria provide a useful checklist by which to delineate an intangible asset from an expense.Originality/valueThe criteria have already been applied to brand assets in the marketing domain. It is now being applied for the first time to human assets.