Human Resource Accounting and Audit

 Human  Resource  Accounting  &  Audit  –

Definition

―Accounting for people as an organizational resource. It involves measuring the costs incurred by business firms and other organizations to recruit, select, hire, train and develop human assets. It involves measuring the economic value of people to the organization.‖

Basic Information of HR

•         Number of Employees

•         Categories

•         Grades

•         Total Value of human resources

•         Value per employee

HR Acquisition

• Number of employees acquired during the year

•         Cost of Acquisition

•         Levels for which they were acquired

•         HR Development

•         All information pertaining to HRD activities of the organization

•         HR maintenance

•         Cost related to HR maintenance.

•         HR Separation

•         Cost related to HR Separation, attribution rate.

•         Details of benefits provided to the employees

Various Methods:

Non- Monetary Measurement

Monetary Measurement

on- Monetary Measurement

•        Capitalization of Historical Cost

•        Replacement Cost Method

•        Opportunity Cost method

•        Economic Value Method

•        Present Value Method

HR Accounting

•        Developing skill inventory

•        Performance Appraisal

•        Assessing the individual capacity for development

•        Attitude survey

•        Subjective Appraisal

Human source Information System (HRIS)

Acquisition , storage and retrieval of information is a significant challenge to the management

•        Human Resource Information System is a systematic way of storing data and information for each individual employee to aid planning , decision making and submitting of returns and reports to the external agencies.