HUMAN RESOURCE ACCOUNTING PRACTICES IN NEPALESE COMMERCIAL BANKS
Abstract
This research aims to examine Human Resource Accounting Practices in Nepalese Commercial Banks. A descriptive design is utilized for this study. Human Resource Accounting Disclosure Index (HRADI) is applied, focusing on five main indicators: the nature of Human Resource Accounting (HRA), valuation of HRA, financial statements regarding HRA, auditing practices for HRA, and enhancement programs for HRA practices, as well as using the Lev and Schwartz Model to draw conclusions. The analysis considered all 20 commercial banks operating in Nepal as the population sample. To achieve the objectives of this research, both primary and secondary data are gathered. Primary data was collected through judgmental sampling, where selected respondents completed questionnaires, while secondary data was sourced from the annual reports of the banks. Among the 20 banks, only Standard Chartered Bank Nepal Limited (SCBNL) and Nabil Bank Limited (NBL) were included in the sample. Authorized human resource officers from these banks participated in the study. The analysis of the data utilized HRADI and the Lev and Schwartz model. Results indicated that HRADI for SCBNL and NBL were 69.23% and 76.92%, respectively, suggesting that human resource accounting practices at both banks have not reached satisfactory standards. Both institutions follow the Nepal Financial Reporting Standard, classifying human resource expenses under Personnel Expenses and Deferred Employee Expenditure, yet neither has established a true valuation for their human resources.
References
Brummet, R. L., Flamholtz, G. & Pyle, W. C. (1968). Human Resource Measurement --A Challenge for Accountants. The Accounting Review, 43(2), 217-224.
Chakraborty, S. K. (1976). Management Development: A Diagnostic Study. Economic and Political Weekly, 11(35), 81-90.
Cherian, J. & Farouq, S. (2013). A review of human resource accounting and organizational performance. International Journal of Economics and Finance. 5(8), 74-83.
Dhanabhakyam, M. & Mufliha, S. (2015). Models of Human Resource Accounting and Its Applicability in the Valuation of Faculty Member. EPRA International Journal of Economics and Business Review, 3(6), 87-92.
Flamholtz, E. G. (1971). A Model for Human Resource Valuation: A Stochastic Process with Services Rewards. Accounting Review, 46(2), 253-267.
Flamholtz, E. G. & Likert, E. (1973). Human Resource Accounting: Measuring positional replacement costs. Human Resource Management 12(Spring), 8-16.
Gupta, A. K. (2021). A Study of Human Resource Accounting. International Journal of Research in Engineering Science and Management 4(1), 10-12.
Gupta, R. L. & Radhaswamy, M. (2002). Corporate Accounting. New Delhi, Sultan Chand and Sons Educational Publishers.
Heckiman, J. S. & Jones, C. (1967). Put people on your Balance Sheet. Harvard Business Review, 43(2), 105-113.
Hermanson, R. H. (1964). Accounting for Human Assets. Graduate School of Business Administration, Michigan State University, 14, 1-69.
Huq, S.M.U & Prince, P.R. (2012).Practice of human resource accounting in banking sector of Bangladesh. International Journal of Accounting and Financial Management Research, 2, 14-23.
Jaggi, B. & Lau, H. S. (1974). Toward a Model for Human Resource Valuation. The Accounting Review, 49(2), 321-329.
Kirfi, M. M. & Abdullahi, A. (2012). Human Capital Accounting: Assessing Possibilities for Domestication of Practice in Nigeria. Research Journal of Finance and Accounting 3(10):57-63.
Koirala, Y. R. & Achary, R. P. et al (2016). Advanced Financial Accounting. Kathmandu, Asmita Books Publishers & distributors Pvt. Ltd.
Lev, B. & Schwartz, A. (1971). On the use of the Economic Concept of Human Capital in Financial Statements. Accounting Review, 46(1), 103-112.
Likert, R. & Bowers, D.G. (1968). Organizational Theory and Human Resource Accounting. American Psychologist.
Mamun, S.A.A (2009). Human resource accounting (HRA) disclosure of Bangladeshi companies and its association with corporate characteristics. BRAC University Journal, 6(1), 35-43.
Morse, W. J. (1973). A Note on the Relationship between Human Assets and Human Capital. The Accounting Review, 48(3), 589-593.
Ogan, P. (1976, April). A Human Resource Value Model for Professional Service Organizations. The Accounting Review, 51(2), 306-320.
Okeke, R.C. (2015). Human capital accounting: A literature review. Growing Science, 1-10.
Pandurangarao, D. B., Chand, S. & Rajasekhar, D. (2013).A study on human resource accounting methods and practices in India. International journal of social science and interdisciplinary Research, 2(4), 95- 101.
Ravishankar, S. & Mishra, R.K. (1985). Management of human resources in public enterprises. New Delhi: Vision Books Pvt. Ltd.
Performance: Jurnal Bisnis & Akuntansi allows readers to read, download, copy, distribute, print, search, or link to the full texts of its articles and allow readers to use them for any other lawful purpose. The journal allows the author(s) to hold the copyright without restrictions. Finally, the journal allows the author(s) to retain publishing rights without restrictions.
In most cases, appropriate attribution can be provided by simply citing the original article, for example:
Sakdiyah, H. (2017). ANALISIS PENERAPAN ENVIROMENTAL MANAGEMENT ACCOUNTING (EMA) PADA RSUD DR.H.SLAMET MARTODJIRJO PAMEKASAN. PERFORMANCE: Jurnal Bisnis & Akuntansi, 7(1), 1-18. doi:https://doi.org/10.24929/feb.v7i1.343
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
4.png)
.png)
