The Role of Human Resource Costing in Assisting Investors to Appraise the Human Assets of a Business Enterprise
International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 2, April 2014, Pages: 117-122
Received: Jan. 29, 2014; Published: Mar. 10, 2014
Views 2673      Downloads 100
Authors
Alnasser Nabil Mahmoud, Accounting Department, Al-Zaytoonah University of Jordan, Amman, Jordan
Shaban Osama Samih, Accounting Department, Al-Zaytoonah University of Jordan, Amman, Jordan
Atieh Abdallah K, Accounting Department, Al-Zaytoonah University of Jordan, Amman, Jordan
Article Tools
PDF
Follow on us
Abstract
This research study aims to contribute in modifying the current accounting practice through recognizing investments in human resources as an asset cost. The current study try to explain that, the original cost of human resource is the sacrifice that was actually incurred to acquire and develop people. The current accounting practices for human assets causes an important problem to investors and management, because it distorts the measurement of return on investment. The study concluded that in order to apply an actual human resources accounting system, companies should use the human resource costs concepts and measurements techniques in a good and effective manner while planning for its costing system.
Keywords
Human Resource Costing, Human Resource Accounting, Allocating Human Resources, Measuring Investment
To cite this article
Alnasser Nabil Mahmoud, Shaban Osama Samih, Atieh Abdallah K, The Role of Human Resource Costing in Assisting Investors to Appraise the Human Assets of a Business Enterprise, International Journal of Economics, Finance and Management Sciences. Vol. 2, No. 2, 2014, pp. 117-122. doi: 10.11648/j.ijefm.20140202.11
References
[1]
J. W. Boudreau and P. M. Ramstad. "Beyond HR: The New Science of Human Capital " Boston: Harvard Business School Press DOI: 10.1002/hrm.20291, 2009.
[2]
Cascio, W. F. "Managing Human Resource: Productivity, quality of work life, profits" 9th ed. New York: McGraw-Hill, 1998.
[3]
Eric G. Flamholtz, "Human Resource Accounting: Advances in Concepts, Methods, and Applications" 3RD ed. Kluwer Academic Publisher, 1999.
[4]
Cascio, W. F, 1998.
[5]
William B. Werther and Keith Davis "Human Resources and Personnel Management" McGraw-Hill-New York, 5th ed. 1996.
[6]
Eric G. Flamholtz, 1999.
[7]
Raymond J. Stone "Human Resources Management", John Wiley & Sons Australia Ltd. 7th ed. 2010.
[8]
Wayne Cascio, ‏John W. Boudreau "Investing in People: Financial Impact of Human Resource Initiatives" 2nd ed. Pearson edu. Inc. 2010.
[9]
William B. Werther and Keith Davis, 1996.
[10]
Pareek, Udai "Evaluating human resource development" Jaipur. HRD Research Foundation. 1997.
[11]
Eric G. Flamholtz, 1999.
[12]
Wyne F. Cascio, "Costing Human Resources: The Financial Impact of Behavior in Organizations" South-Western College Publishing/Thomson Learning, 4th ed. 2000.
[13]
Eric G. Flamholtz, 1999.
[14]
Eric G. Flamholtz, 1999.
[15]
Eric G. Flamholtz, 1999.
[16]
Parikh, Margie & Gupta, Rajen, "Organizational behavior" TATA McGraw-Hill. 2010.
[17]
Hermanson, R.H "Accounting for Human Assets" Occasional Paper No. 14, Graduate School of Business Administration, Michigan State University. 2004.
[18]
Wyne F. Cascio, "Costing Human Resources" 2000.
[19]
Lev, B. and Schwartz A. "On the Use of the Economic Concept of Human Capital in Financial Statements, Accounting Review, pp. 103-112. 1971.
[20]
Rensis Likert and David G. Bowers, "Improving the Accuracy of profit and loss reports by estimating the change in Dollar value of the human organization". Michigan business Review. 25 March. 1973.
[21]
Jahmani, O.E., & Al-Omari, A. "Implementing Cost Accounting Systems on Jordanian Banks: Field Study" Abhath Yarmouk University, 19(2). 2003.
[22]
Hijazi, I., & Ma’alem, S. Cost Accounting Through Activities. Dar Osama Publishers, Amman, Jordan. 20
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186