Backing international calls, Graham Ward demanded companies take the lead in developing a deliberate strategy to measure human capital, giving a long-awaited boost to valuing the new economy.
Ward said: ‘Measuring intangibles like human capital may seem like a break with my profession’s traditions but it’s essential to building Britain’s sustainable economic success,’ he added.
Ward pointed out that the value of the accountancy profession is founded purely in its employees and their knowledge, not physical assets, such as buildings and equipment.
He was speaking at the launch of a collection of essays by leading business players published by the institute. The launch is part of the Institute’s 2020 Vision Project, which he is leading.
Pleas from investors and accountants to adapt financial reporting to reflect the true value of today’s companies have increased as internet activity has grown. Most accounting standards are grounded in industrial economies where assets on the balance sheet constitute bricks and mortar.
‘The dot.coms have seen the future;’ said Ward. ‘They scramble to get and hold the right people rather than physical assets.’
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel