Since the introduction of human capital into the field of accounting in the 1960s, it has attracted much interest among accounting professionals. Yet, no agreed-upon measures or standards have been reached due to its complex nature. Accounting for human capital is a new twist to the traditional accounting philosophy that needs to be studied and evaluated further. Many organizations, big and small, acknowledge that “our biggest asset is our staff.” However, no organization knows how to account for its employees on its financial statements. Given the rapid change in the business world, businesses have to make effective management use of their people to remain competitive. It is important for accountants to conduct more studies in this area to be able to promulgate uniform standards with which management can measure and evaluate the worth of human capital in its organization. The aim of this paper is to add to the established philosophical framework which can be used to determine if employees should be classified as assets. In doing that, the paper gives account of historical, utility, and suggested methods of accounting for human capital as well as inherent problems that have been documented. It further analyses the characteristics and managerial activities surrounding acquisition and utilizations of both physical and human capital assets.