Human Resource Accounting : The Accountant's Dilemma

The financial statement shows how an organization is fairing viz a viz its economic resources. These economic resources have been broadly divided into human and physical resources. While the physical resources have been conveniently accommodated in the preparation of financial statements, the accountant is still faced with a dilemma concerning the means by which human resources will be captured in the statement hence the concept of human resource accounting. Our objective therefore was to conceptually examine the meaning of human resources, understand how they can be accounted for, find out the various arguments for its valuation and inclusion in the balance sheet, as well as contribute to existing literature on the subject matter. We saw that there are various methods proposed for valuing HR each having their own weaknesses and since there is yet to be a standard as guide, the accountant will continue to be in a dilemma as to evaluating HR as assets for balance sheet purpose