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
Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long term investment for $900,000. During the year, Paxton Corporation reported net income of $300,

Q. Show Sales returns and allowances? Sales returns and allowances Merchandising companies typically permit customers to return goods that are defective or unsatisfactory for a

Q. Explain about stable dollar assumption? In the United States accountants make one more assumption regarding money measurement that the stable dollar assumption. Under the st

Calculate WACC and Rate of Return Capital Structure: 50% debt and 50% equity financing Current cost of debt is 2% above prime (Prime is currently 2.5%) cost of equity is e

Q. Gain and loss recognition principle? The gain and loss recognition principle states that we record gains merely when realized but losses when they first become evident. Ther

How do you set up a t account correctly?

GILCO rents DVDs and DVD players (players) on a short term basis to airline passengers through GILCO locations at every large commercial airport throughout the world.  A passenger

Common size Financial Statements:   Below this process, the total of the tasks side and the total of the possessions side of a Balance Sheet are taken as 100 and each item in

Q. What is Net realizable value? Companies must not carry goods in inventory at more than their net realizable value. Net realizable value is the approximate selling price of a

Determine the Purchasing Procedures Alarge company would use a "purchasing agent" who heads purchasing department. Small companies would use manager/owner, etc. Seller recei