International accounting standards, a sound base for a good start toward human resources value accounting

AuthorElda Hoxhaj
PositionUniversity Tirana, Albania
European Journal of Economics, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
Vol. 3 No. 1
January, 2019
ISSN 2519-1284
Acces online at
International accounting standards, a sound base for a good start toward hu-
man resources value accounting
PhD (C.) Elda Hoxhaj
University Tirana, Albania
International Accounting Standards developed as an indispensable need to enhance the
public con dence and accountability. With the mission to bring uniformity, transparency and
e ectiveness, IAS / IFRS are more and more worldwide required.
The purpose of this paper is to provide an overview of IAS/IFRS concerning Human resource
accounting (HRA) related issues with the aim of promoting continued academic research on
that eld. The paper de nes HRA and evidences the current base of IAS / IFRS, which could
contribute as a sound base for developing human resources value accounting.
Highlighting the importance of HRA, it aims to provide a follow-up analysis of International
Accounting Standards Bodies initiatives or projects related HRA and the global research
developments in that sensitive eld. It summarizes the main ndings and evidences of the
low HRA progress and identi es possible advances in regard.
Keywords: Human Resources Accounting, IAS, IFRS, Fair Value, Intangible asset.
Jel: M40, M41
There are numerous cross-country studies and research regarding on how to develop
HRA in general. In the contemporary economic era, HRA involves accounting for
people as human assets. Although there are developed several model and methods
on assessing and measuring the human value as an asset, the most powerful
economic contributing factor, Human Resources, still remains outside the balance
sheet. Consequently, the nancial framework demonstrates an incomplete tableau of
the organizational real economic value to the stakeholders.
This paper traces the speci c international accounting standards sources which
can soundly further support the right way development of HRA with the aim to
integrate human capital value in nancial statements and the same time enhancing
the disclosing in the nancial reporting.
Methodology: Cognitive, descriptive and comparative (human asset as an intangible
Human Resources Accounting
Human Resource Accounting (HRA) is a relatively new branch of accounting and is
based on the traditional accounting concept that all human capital expenditures and
investments are treated as a cost do not create physical worth.
In the mid-1990s, accounting for people had improved considerably, leading to the

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