Human resource accounting conceptual framework

To make it more explicit, two firms engaged in the same business line, use identical physical assets under similar market conditions, may have different end results in terms of their profitability and growth due to differences in their human assets.

The companies, who are presently reporting human assets valuation, include: 1.

human resource accounting thesis

Occasional Paper No. Under this method all the cost of replacement are considered when an employee is replaced i.

role of human resource accounting in india

The history of our freedom movement www. This necessitates valuable information about resources.

factors influencing human resource accounting

Its basic purpose is to facilitate the effective management of human resources by providing information to acquire, develop, retain, utilize and evaluate human resources. Organizational Theory and Human Resource Accounting.

Only scarce human resources would have value at any particular point of www.

Human capital accounting

Engineers India limited 7. Traditional accounting involves treatment of human capital and non-human capital differently, the recorded value of other assets is indicated as non-human capital. For the betterment of the organizations, it is necessary to evaluate the worth of human resources in a systematic manner and record the information related to them in the financial statement of the organization to communicate their worth time to time to the users of the financial statement. Better decision about people on improved information system can be taken. One may recall, in this connection, the importance which emperor Akbar gave to the nine jewels. Electrical India Ltd. Under this method standard cost of recruitment training and professional Growth for each grade or category of Employees are fixed and compared with actual after recruitment and replacement. Chakraborty in Shalini Sharma and Shukla, R. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. This necessitates valuable information about resources. Further efforts, in this connection, were made by William Far in and Earnest Engle in

Under this method human resources are valued on the bidding cost.

Rated 5/10 based on 6 review
Human Resource Accounting