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Human Asset Valuation : Information affect Stock Investment Decisions : Study
According to a research study by Prof. Ajay Kr. Singh, Delhi School of Economics, Delhi University and Prof. Nisha Gupta, DSPSR, "The inclusion of Human Asset Valuation Information might benefit the investors and it would be of immense use if information relating to Human Asset is presented so that the investors can evaluate properly assets and income."

The research study titled "The Impact of Human Asset Valuation Information on Stock Investment Decisions : An Empirical Study"is published in the latest issue of Finance India - Quarterly Journal of Finance published by Indian Institute of Finance. The basic objective of the study was to examine the influence of human asset valuation information on the decision of the investors.

Study recommends that the Value of Human Asset for the Organisation should be perceived in terms of the contributions made by him/her to the Organisation which is useful for decision making. Human Resource Valuation model based on the Human Asset Accounting Information System (HAAIS) should be used to give the information about human asset in the organisation.

Now a days, the amount invested by organizations on human resources is very huge and calls for a better way of reporting. The financial information contained in the financial statements of organizations is considered inadequate because of many reasons, among which inability to account and report human resources is one. Money spent on hiring, recruiting, selecting, training and developing human resources will be better accounted for when capitalized rather than expensed.

Human Asset Measurement can create the conditions by which it is possible to quantify the added value that people create in an organization. It is a way of measuring the ratio between the investment in people and the contribution made by people. But even today, very few organizations have a systematic integrated way of balancing the cost of their people with a measure of the value they are able to contribute.

In India and other countries also, few companies are there who provide qualitative and quantitative information in the supplements to the financial statements but still Accounting Boards have not given adequate attention to developing criteria to measure human asset and to show these in the balance sheet. Unless and until, it will be mandatory for the companies to show this information in the balance sheet, it will not benefit to the investors.

The study recommends the organizations to capitalize and report all expenditures/investments on human asset that can improve their quality and productivity. But valuing human beings should be about value rather than cost.

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