The meaning of this note is to link two closely linked accounting aspects, such as the Financial and Economic Issues, relating these to another organizational aspect that is Human Capital.
In accounting science, we distinguish –as previously stated- the Financial from the Economic, two related but different concepts at the same time.
It is necessary to speak of "Equity", that is, Assets, Liabilities and Equity, the accounting ABC Active is equal to Liabilities plus Equity, if we make a passage of terms we will obtain "The Static Equity Equation", this indicates Active minus Liabilities is equal to Equity.
By Assets we understand resources of an entity, credits, fixed assets, exchange goods, etc., these are the elements that allow us to Build Income. By Liabilities we understand our Debts and Obligations, reaffirming Equity as the difference between Assets minus Liabilities.
The previous paragraph implies the Financial, that is, our ability to deal with our Assets to Liabilities, thus defining the entity's equity situation.
The Economic is observed in the Statement of Income, as there it highlights if the Company gives Losses or Profits, whatever the Result of the last line, it will weaken or strengthen the Equity Position.
Well, let's see the human aspect… the word Capital comes from the Latin Capitalis (Indo-European language) and means " Central or referring to the Center, at the Head ", when we say Human Capital, we point to people, that is why we can also call it Human Resources. Personally, I like the expression Human Capital more, from the perspective that we not only count people as something central in any organization, but also give them a sense of Value.
Now let's land the accounting concepts in the «Human Capital», the smallest unit of measure would be a person, the question is… how am I of Net Worth at the Person level? Do I have optimal resources to face my obligations and demands? Let's call it Competencies, Skills, Expertíz, Attitude, etc. that ensure on fulfilling what is owed to Life?
Also in the financial area we can question ourselves… do I have "credit" in my promised word? Do I have papers and guarantees that allow me to move in this world with solidity and tranquility? Do I have organic working capital support?
Economically: does the result of my "last line" have a positive or negative sign? Am I a person who adds Value to the Society that contains me?
Conclusion: the exercise of thought is to cross accounting science with the human, review our Assets, reduce Liabilities to achieve the best Patrimonial position, maintain solidity at the same time of availability to achieve and share what we need in our lives. Let's consolidate "our Income Statement" positively in order to feed our Social Asset Quality.
At first glance it seems easy, in reality it is not so easy, although it is worth trying.
