HUMAN RESOURCE ACCOUNTING MODELS: A CONCEPTUAL FRAMEWORK

Abstract

Over the past four centuries, the concept of measuring and reporting on human resources (HR) has evolved. Accountants have discussed economic theory and human resource accounting (HRA). The most valuable asset for a business is its human capital, yet there are no official guidelines on identifying, assessing, and disclosing it in financial reports. Academic researchers have demonstrated that financial statements do not adequately address human resources. One of the causes of this is that there are several methods for calculating the worth of human resources. Hence, it's crucial to assess the measurement of human resources before determining the appropriate amount of acknowledgement in the financial report. This study critically reviews the various methods/models of Human Resource Accounting. According to the type of measurement, the valuation methods were classified, and each method's advantages and disadvantages were examined. This study used literature in the form of secondary data such as documents, journal articles, and a thesis