OUR PRINCIPAL ASSET IS OUR PEOPLE
Dana Corporation included the following in its 2001 financial report:
Foundation Business: Focused Excellence
Dana’s foundation businesses are: axles, drive shafts, structures, brake and chassis products, fluid systems, filtration products, and bearing and sealing products.
These products hold strong market positions—number one or two in the markets they serve. They provide value-added manufacturing, are technically advanced, and each has features that are unique and patented.
Management Statement (in Part)
We believe people are Dana’s most important asset. The proper selection, training, and development of our people as a means of ensuring that effective internal controls are fair, uniform reporting are maintained as standard practice throughout the Company.
Required
a. Dana states that ‘‘We believe people are Dana’s most important asset.’’ Currently, generally accepted accounting principles do not recognize people as an asset. Speculate on why people are not considered to be an asset.
b. Speculate on what concept of an asset Dana is considering when it states ‘‘We believe people are Dana’s most important asset./p>