| Peer-Reviewed

The Role of Human Resource Costing in Assisting Investors to Appraise the Human Assets of a Business Enterprise

Received: 29 January 2014     Published: 10 March 2014
Views:       Downloads:
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.

Published in International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 2)
DOI 10.11648/j.ijefm.20140202.11
Page(s) 117-122
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Human Resource Costing, Human Resource Accounting, Allocating Human Resources, Measuring Investment

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
Cite This Article
  • APA Style

    Alnasser Nabil Mahmoud, Shaban Osama Samih, Atieh Abdallah K. (2014). 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, 2(2), 117-122. https://doi.org/10.11648/j.ijefm.20140202.11

    Copy | Download

    ACS Style

    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. Int. J. Econ. Finance Manag. Sci. 2014, 2(2), 117-122. doi: 10.11648/j.ijefm.20140202.11

    Copy | Download

    AMA Style

    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. Int J Econ Finance Manag Sci. 2014;2(2):117-122. doi: 10.11648/j.ijefm.20140202.11

    Copy | Download

  • @article{10.11648/j.ijefm.20140202.11,
      author = {Alnasser Nabil Mahmoud and Shaban Osama Samih and Atieh Abdallah K},
      title = {The Role of Human Resource Costing in Assisting Investors to Appraise the Human Assets of a Business Enterprise},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {2},
      number = {2},
      pages = {117-122},
      doi = {10.11648/j.ijefm.20140202.11},
      url = {https://doi.org/10.11648/j.ijefm.20140202.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140202.11},
      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.},
     year = {2014}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - The Role of Human Resource Costing in Assisting Investors to Appraise the Human Assets of a Business Enterprise
    AU  - Alnasser Nabil Mahmoud
    AU  - Shaban Osama Samih
    AU  - Atieh Abdallah K
    Y1  - 2014/03/10
    PY  - 2014
    N1  - https://doi.org/10.11648/j.ijefm.20140202.11
    DO  - 10.11648/j.ijefm.20140202.11
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 117
    EP  - 122
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20140202.11
    AB  - 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.
    VL  - 2
    IS  - 2
    ER  - 

    Copy | Download

Author Information
  • Accounting Department, Al-Zaytoonah University of Jordan, Amman, Jordan

  • Accounting Department, Al-Zaytoonah University of Jordan, Amman, Jordan

  • Accounting Department, Al-Zaytoonah University of Jordan, Amman, Jordan

  • Sections