International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
Printed Journal   |   Refereed Journal   |   Peer Reviewed Journal
Vol. 1, Issue 1 (2018)

Human resource accounting: A study of perceptions of investors and managers


Dr. Surinder Kaur

In the past, the main factors of production were seen as capital, raw materials, and physical resources, all of which were considered valuable assets and recorded on a company's balance sheet. However, with the emergence of the knowledge economy, there has been a shift in perspective, acknowledging the critical role of human resources (HR) / human capital. Today, management recognizes that human resources are the driving force behind capital accumulation, the utilization of natural resources, and the construction of social and economic organizations. Therefore Human Resource Accounting (HRA) is advocated to provide a more comprehensive understanding of a company's worth. The present paper has been undertaken to examine stakeholders’ perspective on designing an HR accounting and reporting model, including HR valuation, their accounting and reporting format that is in accordance with the expectations of stakeholders. A self-structured questionnaire is used for the primary survey of investors and managers to seek their opinions about setting up of effective and reliable HRA system in companies. The data has been analysed using MS Excel and SPSS by relevant statistical methods. The survey has suggested that companies should form a committee of human resources managers, and accounting and finance managers. The committee should be responsible for setting up system for collecting data relating to significant human resource related disclosures and presenting the same in prescribed format to relevant stakeholders as required. Besides this, the study also identified the human resources indicators perceived as most important by the managers and investors. These can be used as guide by accounting and regulatory bodies for setting up standards for human resource disclosures by the companies.
Pages : 78-86 | 404 Views | 195 Downloads


International Journal of Financial Management and Economics
How to cite this article:
Dr. Surinder Kaur. Human resource accounting: A study of perceptions of investors and managers. Int J Finance Manage Econ 2018;1(1):78-86. DOI: 10.33545/26179210.2018.v1.i1.210
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