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Key Employee is really an asset to the company.
You can only value add...a day will come...
(Company cannot exchange a key employee for value nor provide for Depreciation)
I think that the phrase 'people as our greatest assets' is an overrated and overused cliche. People are a very important part or our organization and they are resources that require management and nurturing. People also do not 'belong to' the firm as they are free to leave. By definition an asset is expected to depreciate in value, diminishing it's future ability to add value to the firm. With people in organisations we expect their future value to increase through experience and training. The net effect to the bottom line is inherent in the BS through higher profits. On the other hand, would a sports club report its players as assets and as players age, would their value diminish in the balance sheet? I think that the triple bottom line reporting structure should be inter related; I.e the correlation between CSR and company performance. Non economic metrics are good to monitor as they are leading performance indicators and as Jim mentions in his post, good CEOs will spot the expenditure that will maximize future ROI.
I agree with Mr. answer VENKITARAMAN
in addition to the fellows' answers a useful life end of a key employee cannot be estimated to calculate depreciation....!!
Because it does not apply to assets specifications
* - Can not determine its useful life
* - Can not owning
* - Can not estimate its services
