Human Resource Accounting: Recognition and Disclosure of Accounting Methods & Techniques

Topics: Capital accumulation, Balance sheet, Capital Pages: 24 (7229 words) Published: July 14, 2013
Global Journal of Management and Business Research Accounting and Auditing Volume 13 Issue 3 Version 1.0 Year 2013 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853

Human Resource Accounting: Recognition and Disclosure of Accounting Methods & Techniques By Md. Amirul Islam, Md. Kamruzzaman & Md. Redwanuzzaman
Business Administration Pabna Science & Technology University

Abstract - HRA is the process of identifying, measuring data about human resources and communicating this information to interested parties the major objects of the study is to highlight the major characteristics of HRA along with the practical benefits and difficulties in implementations. The study forms mainly the extensive review of related literature based on highly work. The major benefits of such accounting are that it develops effective managerial decision making, quality of management, prevents misuse of human resources, increases human asset productivity, improves morale, job satisfaction and creativity, etc. The constraints involved are that uncertainty of human resources creates uncertainty in valuation of human resources. Nature of amortization is another difficulty, valuation of human resources, their accounting treatments is also difficult as there is no specific IAS/IFRS for such treatment.

Keywords : human resources, management, accounting treatments, human resources capital. GJMBR-D Classification : JEL Code: M41, H83

HumanResourceAccountingRecognitionandDisclosureofAccountingMethodsTechniques

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© 2013. Md. Amirul Islam, Md. Kamruzzaman & Md. Redwanuzzaman. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/bync/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Human Resource Accounting: Recognition and Disclosure of Accounting Methods & Techniques Md. Amirul Islam α, Md. Kamruzzaman σ & Md. Redwanuzzaman ρ Abstract - HRA is the process of identifying, measuring data about human resources and communicating this information to interested parties the major objects of the study is to highlight the major characteristics of HRA along with the practical benefits and difficulties in implementations. The study forms mainly the extensive review of related literature based on highly work. The major benefits of such accounting are that it develops effective managerial decision making, quality of management, prevents misuse of human resources, increases human asset productivity, improves morale, job satisfaction and creativity, etc. The constraints involved are that uncertainty of human resources creates uncertainty in valuation of human resources. Nature of amortization is another difficulty, valuation of human resources, their accounting treatments is also difficult as there is no specific IAS/IFRS for such treatment.

II.

Objectives of Hra

III.

Objectives of the Study

Keywords : human resources, management, accounting treatments, human resources capital. I.

Introduction

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uman Resource Accounting (HRA) is a new branch of accounting. It follows the traditional concept that all expenditure on human capital formation is taken as a charge against the revenue of the period as it does not create any physical asset. Modern view is that cost incurred on any asset as human resources need to be capitalized as it provides benefits measureable in monetary terms. Measurement of cost and value of the people to organizations is highly important, costs incurred in recruitment, selection, hiring, training and development of employees along with there economic values are very much relevant for Human Resource Accounting. American Accounting society on HRA defines HRA as follows:1...
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