Human Resource Accounting: The Accountant's Dilemma

Aronmwan, E. J., & Izedonmi, F. I. O. (2011). Human resource accounting: The accountant’s dilemma. Journal of Management Sciences, 11(1), 10-21

12 Pages Posted: 12 Aug 2015

See all articles by Edosa Aronmwan

Edosa Aronmwan

University of Benin - Department of Accounting

Famous Izedonmi

University of Benin - Department of Accounting

Date Written: July 31, 2011

Abstract

The financial statement shows how an organization is fairing viz a viz its economic resources. These economic resources have been broadly divided into human and physical resources. While the physical resources have been conveniently accommodated in the preparation of financial statements, the accountant is still faced with a dilemma concerning the means by which human resources will be captured in the statement hence the concept of human resource accounting. Our objective therefore was to conceptually examine the meaning of human resources, understand how they can be accounted for, find out the various arguments for its valuation and inclusion in the balance sheet, as well as contribute to existing literature on the subject matter. We saw that there are various methods proposed for valuing HR each having their own weaknesses and since there is yet to be a standard as guide, the accountant will continue to be in a dilemma as to evaluating HR as assets for balance sheet purpose.

Keywords: Human Resources, Human Resource Accounting

JEL Classification: M41

Suggested Citation

Aronmwan, Edosa and Izedonmi, Famous, Human Resource Accounting: The Accountant's Dilemma (July 31, 2011). Aronmwan, E. J., & Izedonmi, F. I. O. (2011). Human resource accounting: The accountant’s dilemma. Journal of Management Sciences, 11(1), 10-21, Available at SSRN: https://ssrn.com/abstract=2638453

Edosa Aronmwan (Contact Author)

University of Benin - Department of Accounting ( email )

Ugbowo-Lagos Road
University of Benin,
Benin City, Benin City, Edo State PMB 1154
Nigeria

Famous Izedonmi

University of Benin - Department of Accounting ( email )

Edo State, Nigeria
Faculty of Law
Benin City, 300283
Nigeria

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