Abstract
This study presented a conceptual study on the relationship between human
resource accounting and wealth maximization. The study is based on the modern
approach that views human resource accounting as an asset unlike the traditional
approach which views human resource accounting as an expenditure. The study is
mostly based on literature review, research papers, and materials of professional
accounting bodies as well as seminars, workshop, and conferences, papers. The
findings revealed that even though human resource has been widely accepted to be an
asset there is no widely accepted technique of valuation of human resources for
accounting purposes. This is as a result of different opinions and views by different
scholars on how to analyse human resource accounting. This study recommended that
there should be a widely accepted method by which human resource accounting will
be analysed. Secondly, organizations should fully embrace the modern concept of
human resource accounting by which human resource are capitalized in the statement
of financial position instead of being expensed in the statement of profit or loss account
as an expense which will reduce the profitability of an organisation
resource accounting and wealth maximization. The study is based on the modern
approach that views human resource accounting as an asset unlike the traditional
approach which views human resource accounting as an expenditure. The study is
mostly based on literature review, research papers, and materials of professional
accounting bodies as well as seminars, workshop, and conferences, papers. The
findings revealed that even though human resource has been widely accepted to be an
asset there is no widely accepted technique of valuation of human resources for
accounting purposes. This is as a result of different opinions and views by different
scholars on how to analyse human resource accounting. This study recommended that
there should be a widely accepted method by which human resource accounting will
be analysed. Secondly, organizations should fully embrace the modern concept of
human resource accounting by which human resource are capitalized in the statement
of financial position instead of being expensed in the statement of profit or loss account
as an expense which will reduce the profitability of an organisation
Keywords:
Human Resource Accounting
Wealth Maximization
Human Resource
Shareholder.
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