Human resource accounting, Accounting Basics

Human Resource Accounting:

Way back in the year 1964 the first attempt to comprise figures on human capital in the balance sheet was made through Hermansson that later came to be termed as Human Resource Accounting. Although there had been a huge socio-economic move in the 1990year's  along with the emergence of "Knowledge economy", a distinctive move towards recognition of human and intellectual capital in contrast for physical capital. Human Resource Accounting is a division of accounting that seeks to report and emphasis the significance of human resources that is knowledgeable, loyal, trained and committed workers in a company's earning method and total assets. This is involved with "the process of knowing and  measuring  data  regarding  human  resources  and  communicating such information to interested parties". In easy words such includes accounting for deal in people and replacement costs and also accounting for the economic values of people to an organization. Usually the methods utilized for valuing and accounting of  human  resources are  either  depends  on  costs  or  upon  economic value  of  human resources.  Conversely providing adequate and  legal  information on  human  benefits or capital, that are outside the notion of ownership, in figures is very complex. However HRA is a managerial tool giving valuable information to the top management to  acquire decisions about adequacy of  human resources and hence encouraging managers to identify investment in manpower in a more positive manner.

Posted Date: 4/2/2013 6:51:56 AM | Location : United States

Related Discussions:- Human resource accounting, Assignment Help, Ask Question on Human resource accounting, Get Answer, Expert's Help, Human resource accounting Discussions

Write discussion on Human resource accounting
Your posts are moderated
Related Questions
uses of accounting as a software enginner

Why to and by using in journal, trading a/c, p&l a/c and ledger?

Q. What is Public accounting? Public accounting firms offer professional accounting and related services for a fee to organizations, other companies, and individuals. An accoun

Q. What is Instance financial reporting? For instance financial reporting should - Provide information concerning an enterprise's past performance because such information i

Q. What is FOB shipping point? FOB shipping point signifies free on board at shipping point. The buyer acquires all transportation costs after the merchandise has been loaded o

Q. Illustrate unearned service fees? Micro Train reports the service income in its income statement for 2010. The company enters the USD 3000 balance in the Unearned Service Fe

even after preparing BRS why does balance as per cash book and balance as per pass book do not tally?

Q. How to determine inventory cost? To place the proper evaluation on inventory a business must answer the question: Which costs must be included in inventory cost? After that

Business is an activity performed with the only intention of earning profit. The activity may differ according to the scope and volume.

Q. Accounting systems from manual to computerized? The manual accounting system with merely one general journal and one general ledger has been in use for hundreds of years and