European Journal of Business and Innovation Research (EJBIR)

EA Journals

Human Resource Accounting: Implication for The Financial Statement in Nigeria

Abstract

Human Resource Accounting is receiving serious attention by Accountants all over the globe and this paper is a contribution to such debate. This study examines Human Resource accounting and its implication on Financial Statement. The study made use of secondary data in achieving its objective. Works of several Scholars were analysed to arrive at the objective of the study). Two models of accounting for Human Resource in the financial statement in Nigeria were recommended. The first being-The Capitalisation Model: All expenditure incurred in hiring a staff aside the cost of advertisement should be capitalized and amortised against revenue for 3 years.. The second recommendation is the Realisation model: Employee personal Ledger should be opened and debited with the cost of hiring such employee. The contribution of such employee should be tracked in the form of cost savings and revenue generation and should be credited to the employee personal ledger. At the end of the year, the balance on the personal ledger should be moved to the Financial statement as either an asset or a liability. In this case asset will emerge when the employee has a Credit balance while a liability will emerge when such employee has a debit balance.

Keywords: Accounting, Financial Statement, Human resource, Implication, Nigeria

cc logo

This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License

 

Recent Publications

Email ID: editor.ejbir@ea-journals.org
Impact Factor: 7.79
Print ISSN: 2053-4019
Online ISSN: 2053-4027
DOI: https://doi.org/10.37745/ejbir.2013

Author Guidelines
Submit Papers
Review Status

 

Scroll to Top

Don't miss any Call For Paper update from EA Journals

Fill up the form below and get notified everytime we call for new submissions for our journals.