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Human Resource Valuation: Perspectives on External Financial Reporting in terms of Decision Usefulness

Asian Accounting & Auditing Advancement

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Field Value
 
Title Human Resource Valuation: Perspectives on External Financial Reporting in terms of Decision Usefulness
 
Creator Nodee, Mahpara; School of Business & Economics, United International University, Dhaka, BANGLADESH
Karim, Ziaul; School of Business & Economics, United International University, Dhaka, BANGLADESH
 
Subject Human resource accounting, decision usefulness, external reporting, human asset valuation models, faithful representation, relevance
 
Description Globalization has made its way into the business world and it demands true and fair financial information to be reported in the financial statements of companies around the world. To ensure that, businesses should prepare their statements in such a way that embody the financial and physical assets along with human assets. The benefits generated if human resources are expressed numerically are manifold. Despite that, questions are raised regarding the applicability of human resource accounting models. This is an exploratory study where the decision usefulness of human resource accounting information presented in external reports is assessed. In this study, existing literatures of the widely used qualitative human resource valuation models are carefully examined against the prescribed qualitative characteristics of external financial accounting information. Whether the models comply, and if not, the extent of non-compliance is analyzed. In addition, the loopholes in the valuation models that form the basis of such non-compliance are identified. This ultimately represents scope for further research study. Finally, this study acknowledges that reported information can only be made decision useful for external parties only if the information follows the combination of qualitative criteria established by major bodies around the world. It is then recommended that future models should be aligned considering such qualities so as to produce fruitful external information for decision making.    
 
Publisher Asian Business Consortium
 
Contributor —
 
Date 2015-12-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://journals.abc.us.org/index.php/araf/article/view/747
 
Source Asian Accounting & Auditing Advancement; 2015 Selected Publications; 2015_5.2.3
2218-5666
 
Language eng
 
Relation http://journals.abc.us.org/index.php/araf/article/view/747/547
 
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