Human Resource Accounting & 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

Definitions of HRM

Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

HRM is the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization‘sobjectives. Therefore, personnel management is the planning, organizing, directing, and controlling of the performance of those operative functions (Edward B. Philippo).