A Review of Human Resource Accounting and Organizational Performance
Year: 2013
Type: article
Abstract: Human Resources are important assets of an organization. However, there is no legal regulation for accounting human resources in any of the organization’s annual report. The main aim of this review is to study the benefits of HR practices to the firm. This review highlights the theoretical definitions for HRA and challenges faced during implementation of HRA measurement models to predict the organization’s performance. The Human Resource Accounting is defined as “the process of identifying and measuring data related to human resource and communicating this information to interested parties” (American Accounting Association’s Committee on Human Resource Accounting 1973). However, several challenges are faced by organizations during the execution of HRA. Since disclosures on human assets act as an evidence for wealth creation, it is resisted by several entrepreneurs. Human Resource Accounting helps to calculate the human resource capital, worth of management development, and enhances the value of management accounting.
DOI: 10.5539/ijef.v5n8p74
Authors: Jolly Jacob, Sherine Farouq
Institution: Abu Dhabi University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W2014412256