Research Article

Reconceptualising Human Resource Accounting for Shareholder Wealth Maximization A Theoretical Perspective

Abdulkadir Ahmed Hammayo1*, Riku Biki Riku1
1 Department of Accounting, Federal University Wukari
* Corresponding author: aahammayo@fuw.edu.ng
Published: Jul, 2025
Pages: 226-237

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

Keywords

Human Resource Accounting Wealth Maximization Human Resource Shareholder.

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How to Cite

Hammayo, A. A., & Riku, R. B. (2025). Reconceptualising Human Resource Accounting for Shareholder Wealth Maximization A Theoretical Perspective. Management Sciences Horizon Journal, 1(1), 226-237.

A. A. Hammayo, and R. B. Riku, "Reconceptualising Human Resource Accounting for Shareholder Wealth Maximization A Theoretical Perspective," Management Sciences Horizon Journal, vol. 1, no. 1, pp. 226-237, July 2025.

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