Today, within the era of globalisation, the recognition and evaluation of intangible assets according to
IAS/IFRS or rather of human capital is on the agenda, at least since January 1st, 2005. Nevertheless,
human resource accounting is a rather young research area, which still has to prove itself. In practice
this is considered as a challenge. Business teams in companies are beginning to face this finance - and
capital market-oriented as well as personnel management task.
Companies are increasingly attempting to replace or expound product-orientated strategies by customerorientated
strategies. For this reason, the quantification of customer relations within the scope of the
balanced scorecard is increasingly achieving significance as an implementation instrument for strategies
and as a supplement to classic product profitability analysis.
Describe the purpose of the balance sheet and understand its usefulness and limitations.
The Balance Sheet
The purpose of the balance sheet is to report a company’s financial position on a particular date.
Limitations: The balance sheet does not portray the market value of the entity as a going concern nor its liquidation value. p Resources such as employee skills and reputation are not recorded in the balance sheet.
Usefulness: p The balance sheet describes many of the resources a company has available for generating future cash flows.
While the Port Authority’s tunnels, bridges, and airports continue to contribute the vast
majority of cash flow within the organization, over recent decades the Port Authority has
become a significant real estate developer and asset manager with its own expansive security
force, a posture that warrants further evaluation as the demands of the WTC development