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

• Author: Elda Hoxhaj
• Position: University Tirana, Albania
• Pages: 133-143

European Journal of Economics, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

Vol. 3 No. 1

January, 2019

ISSN 2519-1284

Acces online at www.iipccl.org

133

International accounting standards, a sound base for a good start toward hu-

man resources value accounting

PhD (C.) Elda Hoxhaj

University Tirana, Albania

Abstract

International Accounting Standards developed as an indispensable need to enhance the

public confi 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 fi eld. The paper defi 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 fi eld. It summarizes the main fi ndings and evidences of the

low HRA progress and identifi es possible advances in regard.

Keywords: Human Resources Accounting, IAS, IFRS, Fair Value, Intangible asset.

Jel: M40, M41

Introduction

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 fi nancial framework demonstrates an incomplete tableau of

the organizational real economic value to the stakeholders.

This paper traces the specifi 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 fi nancial statements and the same time enhancing

the disclosing in the fi nancial reporting.

Methodology: Cognitive, descriptive and comparative (human asset as an intangible

asset).

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