THE MEASUREMENTS OF HUMAN RESOURCES ACCOUNTING: THE APPLICATION AND CHALLENGE TO FACE INDUSTRY 4.0 ERA Habiburrochman ; Ari Santi Dwi Irawati
Accountancy Department, Economics and Business faculty, Airlangga University
Abstract
The Idea of Human Resource (HR) measurement and report have been developed since four century ago. The theory and the concept of Human Resource Accounting (HRA) have been debated either by the economics such an accountant or psychologist. HR is the most important asset for a company, however, there is no formal regulation during the recording and calculating the financial report. This study used literature approach in form of secondary data explanation such as documents, journals, and published articles. Descriptive and content analysis approach was used to collect and filter the information related to HRA. The researcher tried to look at the contribution and controversy of the concept appliance, development stage of HRA, and the method found during the stage. The researcher classified the valuation method based on measurement type and analyses the strength and the weakness of each method. Basically, the existence of HRA report will increase financial information quality as the consideration for the users in making a decision. The report showed the company-s responsibility to the external parties. Lev and Schwartz-s model was a Human Asset valuation method which was mostly applied in India. However, in some industries on the different countries had a different characteristic in HRA implementation-s process, for instance; football industry in England, artist management industry in Korea, the financial industry in Sweden and mining industry in Indonesia. In Indonesia mostly, HRA implemented only on disclosure in a sustainability report.
Keywords: Human Asset, Human Resources Accounting, Contribution and Controversy, Valuation Method, Financial Report Disclosure
If your conference is listed in our system, please put our logo somewhere in your website.
Simply copy-paste the HTML code below to your website (ask your web admin):