...Human resource accounting Human Resource Accounting is a method to measure the effectiveness of personnel management activities and the use of people in an organization. Historical cost approach This approach is developed by Brummet, Flamholtz and Pyle but the first attempt towards employee valuation made by R. G. Barry Corporation of Columbus, Ohio in the year 1967. This method measures the organization’s investment in employees using the five parameters: recruiting, acquisition; formal training and, familiarization; informal training, Informal familiarization; experience; and development. The costs were amortized over the expected working lives of individuals and unamortized costs (for example, when an individual left the firm) were written off. Limitations * The valuation method is based on false assumption that the dollar is stable. * Since the assets cannot be sold there is no independent check of valuation. * This method measures only the costs to the organization but ignores completely any measure of the value of the employee to the organization (Cascio 3). Replacement Cost approach This approach measures the cost of replacing an employee. According to Likert (1985) replacement cost include recruitment, selection, compensation, and training cost (including the income foregone during the training period). The data derived from this method could be useful in deciding whether to dismiss or replace the staff. Limitations * Substitution of replacement...
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...Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.4, No.18, 2013 www.iiste.org Problem with Human Resource Accounting and A Possible Solution Md. Mustafizur Rahaman1* Md. Amzad Hossain2 Tabassum Akter3 1. Lecturer, Department of Accounting, Bangladesh University of Business & Technology (BUBT), Mirpur-2, Dhaka-1216, Bangladesh 2. Lecturer, Department of Business Administration, East West University, Plot No-A/2, Jahurul Islam City, Aftabnagar Main Rd, Dhaka 1219, Bangladesh 3. Lecturer, Department of Business Administration, Prime University, Dar-Us-Salam Rd, Dhaka 1216, Bangladesh * E-mail of the corresponding author: mustafizmamun09@gmail.com Abstract The idea of Human Resource Accounting (HRA) has been a debatable issue by academicians, accountants and standards setters universally. This study critically assesses the concept of HRA in order to unveil its strengths and weaknesses. Descriptive and content analyses were used in collecting data through documented texts, journal articles and other publications. The existing models proffered under the HRA were adequately reviewed and objectively criticized so that more comprehensive could be developed. The study revealed that the conceptualization of HRA, the ideas incorporated therein, and arguments are good for the accounting profession and corporate financial reporting. But the existing models yet proposed are not in a state to implement HRA practice worldwide. Hence this paper proposes...
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...Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.4, No.18, 2013 www.iiste.org Problem with Human Resource Accounting and A Possible Solution Md. Mustafizur Rahaman1* Md. Amzad Hossain2 Tabassum Akter3 1. Lecturer, Department of Accounting, Bangladesh University of Business & Technology (BUBT), Mirpur-2, Dhaka-1216, Bangladesh 2. Lecturer, Department of Business Administration, East West University, Plot No-A/2, Jahurul Islam City, Aftabnagar Main Rd, Dhaka 1219, Bangladesh 3. Lecturer, Department of Business Administration, Prime University, Dar-Us-Salam Rd, Dhaka 1216, Bangladesh * E-mail of the corresponding author: mustafizmamun09@gmail.com Abstract The idea of Human Resource Accounting (HRA) has been a debatable issue by academicians, accountants and standards setters universally. This study critically assesses the concept of HRA in order to unveil its strengths and weaknesses. Descriptive and content analyses were used in collecting data through documented texts, journal articles and other publications. The existing models proffered under the HRA were adequately reviewed and objectively criticized so that more comprehensive could be developed. The study revealed that the conceptualization of HRA, the ideas incorporated therein, and arguments are good for the accounting profession and corporate financial reporting. But the existing models yet proposed are not in a state to implement HRA practice worldwide. Hence this paper proposes...
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...MGT 312 Final Exam 26/30 Click Link Below To Buy: http://hwaid.com/shop/mgt-312-final-exam-2630/ Results: 26/30 (86.67%) The interdisciplinary field dedicated to understanding and managing people at work is called: • Management dynamics • Management theory • Organizational dynamics • Organizational behavior The distinction between flexible and fixed individual differences: • Is that managers have little or no impact on flexible differences • Is that managers should hire people based on their attitudes and emotions • Is that managers have little or no impact on fixed differences • Has no practical value for managers Regarding using personality testing as part of the hiring process, experts have concluded that: • The typical personality test is not a valid predictor of job performance • Only the Big Five should be used as predictors of job performance • The effects of personality on job performance are so large it cannot be ignored by managers • There are many valid instruments available to managers to test for personality types 4 In Ajzen’s theory of planned behavior, ___________ is (are) the key link between _________. • Intentions; attidtudes and planned behavior • Norms; intentions and planned behavior • Intentions; norms and attitudes • Attitudes; intentions and planned behavior According to the Ajzen model, the strongest predictor of an employee’s behavior is (are): • The employee's...
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...MGT 312 Final Exam UOP New Materials 1. Self-enhancement and self-transcendence are: • Endpoints of one of the dimensions of values • Personal attitudes • Cognitions • Workplace attitudes 2. Regarding using personality testing as part of the hiring process, experts have concluded that: • The effects of personality on job performance are so large it cannot be ignored by managers • The typical personality test is not a valid predictor of job performance • There are many valid instruments available to managers to test for personality types • Only the Big Five should be used as predictors of job performance 3. Keyshawn is a player on a professional football team. Because of this, his play every week is scrutinized by fans and media, as well as his own coaches. Sometimes, their comments are very negative and even personal. Keyshawn will handle this better if he has a high level of _________ intelligence. • Interpersonal • Spatial • Bodily-kinesthetic • Intrapersonal 4. Camilla, a manager, notes that while Wilhelm’s written reports are very thorough and accurate, his oral presentations are not effective. Camilla is looking at: • Consistency • Distinctiveness • Implicit factors • Explicit factors 5. The extent to which an individual identifies with an organization and commits to its goals is called: • Organizational satisfaction • Organizational commitment • Perceived organizational support • Job involvement Want to download...
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...1 CHAPTER 21 VALUING FINANCIAL SERVICE FIRMS Banks, insurance companies and other financial service firms pose particular challenges for an analyst attempting to value them for two reasons. The first is the nature of their businesses makes it difficult to define both debt and reinvestment, making the estimation of cash flows much more difficult. The other is that they tend to be heavily regulated and the effects of regulatory requirements on value have to be considered. In this chapter, we begin by considering what makes financial service firms unique and ways of dealing with the differences. We then look at how best we can adapt discounted cash flow models to value financial service firms and look at three alternatives – a traditional dividend discount model, a cash flow to equity discount model and an excess return model. With each, we look at a variety of examples from the financial services arena. We move on to look at how relative valuation works with financial service firms and what multiples may work best with these firms. In the last part of the chapter, we examine a series of issues that, if not specific to, are accentuated in financial service firms ranging from the effect of changes in regulatory requirements on risk and value to how best to consider the quality of loan portfolios at banks. Categories of financial service firms Any firm that provides financial products and services to individuals or other firms can be categorized as a financial service firm. We...
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...of the company’s system and it also helps them to form that kind of loyalty they need in order to run the stores. In fact, managers’ role is to keep customers involved in the philosophy of the company so customers are provided with a wide knowledge of the products that the company offers. The four different aspects on which managers have to focus are planning, organizing, leading, and controlling. All of functions are important within the company and each of them has particular tasks. For example planning is obtained by the pursuit of value which is good tasting and quality at a low cost. 3. Trader Joe’s’ concerns in human capital is demonstrated by how it values all the employees within the company. In order to make the company successful in achieving its goal, Trader Joe’s gives its workers the knowledge of its system and it also teaches them everything about the different products. Briefly the human capital at Trader Joe’s is obtained by training and inspiring the workers and by valuing them through high benefits and salaries. 4. The value chain is “a sequence of activities that creates valued goods and services for customers” (“Organizational behavior”). Trader Joe’s develop such system in the following way: it offers high quality products at a low price, it creates an effective and productive environment among the workers and it sells the product to customers. Customers, by deciding whether or not to buy the products Trader Joe’s offers,...
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...λζξχϖβνµρτψυιοπασδφγηϕκλζξχϖβνµθ ωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψυι οπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφγ ηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξ χϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµθ ωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψυι οπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφγ ηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξ χϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµθ 29113242 Challenge in the beginning • Since 1948 the Korean government tried to establish an integrated steel mill in Korea to meet the rising demand. The challenge is that to build such factories usually it requires advanced technologies, massive amount of capital, a domestic market large enough to enable economies of scale, and access to natural, which Korea does not have. Financially the World Bank & other developed countries also do not support Korea to build such mills hence the funding is hard. Poor knowledge & experience. In the initial construction phase, POSCO had to rely on technology experts from Japan Group for the...
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...how mergers and acquisitions work. This course deals with advanced concepts in valuation. Therefore, the user should have an understanding of cost of capital, forecasting, and value based management before taking this course. This course is recommended for 2 hours of Continuing Professional Education. In order to receive credit, you will need to pass a multiple choice exam which is administered over the internet at www.exinfm.com/training Published June 2000 Chapter 4 Valuation Concepts & Standards As indicated in Part 1 of this Short Course, a major challenge within the merger and acquisition process is due diligence. One of the more critical elements within due diligence is valuation of the Target Company. We need to assign a value or more specifically a range of values to the Target Company so that we can guide the merger and acquisition process. We need answers to several questions: How much should we pay for the target company, how much is the target worth, how does this compare to the current market value of the target company, etc.? It should be noted that the valuation process is not intended to establish a selling price for the Target Company. In the end, the price paid is whatever the buyer and the seller agree to. The valuation decision is treated as a capital budgeting decision using the Discounted Cash Flow (DCF) Model. The reason why we use the DCF Model for valuation is because: ▪ Discounted Cash...
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...Journal of International Business and Cultural Studies Human resource accounting and international developments: implications for measurement of human capital Maria L. Bullen Clayton State University Kel-Ann Eyler Wesleyan College Abstract Human Resource Accounting (HRA) involves accounting for expenditures related to human resources as assets as opposed to traditional accounting which treats these costs as expenses that reduce profit. Interest and contributions to growth in HRA have been evident in a number of countries. The strong growth of international financial reporting standards (IFRS) is an indication that the environment for international financial accounting is one that potentially encourages the consideration of alternative measurement and reporting standards and lends support to the possibility that future financial reports may include nontraditional measurements such as the value of human resources using HRA methods. Keywords: Human Resource Accounting, Human Capital, Intellectual Capital, International Accounting, International Financial Reporting, International Financial Reporting Standards Human Resource Accounting, Page 1 Journal of International Business and Cultural Studies Introduction Human Resource Accounting (HRA) involves accounting for the company’s management and employees as human capital that provides future benefits. In the HRA approach, expenditures related to human resources are reported as assets on the balance sheet as opposed to the...
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...1 Valuing Financial Service Firms Aswath Damodaran April 2009 Valuing banks, insurance companies and investment banks has always been difficult, but the market crisis of 2008 has elevated the concern to the top of the list of valuation issues. The problems with valuing financial service firm stem from two key characteristics. The first is that the cash flows to a financial service firm cannot be easily estimated, since items like capital expenditures, working capital and debt are not clearly defined. The second is that most financial service firms operate under a regulatory framework that governs how they are capitalized, where they invest and how fast they can grow. Changes in the regulatory environment can create large shifts in value. In this paper, we confront both factors. We argue that financial service firms are best valued using equity valuation models, rather than enterprise valuation models, and with actual or potential dividends, rather than free cash flow to equity. The two key numbers that drive value are the cost of equity, which will be a function of the risk that emanates from the firm’s investments, and the return on equity, which is determined both by the company’s business choices as well as regulatory restrictions. We also look at how relative valuation can be adapted, when used to value financial service firms. 2 Banks, insurance companies and other financial service firms pose special challenges for an analyst attempting to value...
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... | | |Human Capital Management | Copyright ©2011 by University of Phoenix. All rights reserved. Course Description This course prepares students to address the concepts of personnel development as managers. Students learn criteria for developing effective job analysis, appraisal systems, and appropriate career development plans for employees. Other topics include personnel selection, employee compensation, benefits, training, workplace diversity, discipline, employee rights, unions, and management behaviors. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Cascio, W. F. (2010). Managing human resources: Productivity, quality of work life, profits (8th ed.) New York, NY: McGraw-Hill/Irwin. All electronic...
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...in the ranges listed below. I will not ask questions from the “Skills & Best Practices” & “Hands On Exercises” sections in the OB textbook. I will not ask questions from the “HR How To”, “eHRM”, “Did You Know”, “Best Practices” & “HR Oops” sections of the HR textbook. Make sure you download the post-lecture slides from Carmen On page 4 of this study guide I have provided some example questions. Remember the likely sources of exam material: • Material Found in Book & Slides (found both places) – MOST LIKELY • Material Found Only In Slides (I have placed an ASTERISK on slides with non-book content that is exam material) • Material Found Only In Book (e.g. definitions, frameworks,…) Strategy & Strategic OB: K&K Chapter 1: Definitions (key terms): contingency approach, human capital, management, organizational behavior, social capital, Theory Y, total quality management Reading: p.5-16 (just the top of 16) Key concepts Human Relations Movement Theory X, Theory Y Total Quality Management Deming’s 85-15 Rule Contingency Approach Human Capital Social Capital Congruence Model Organizational Culture & Socialization: K&K Chapter 2: Definitions (key terms): adhocracy culture, anticipatory socialization, change and acquisition, clan culture, enacted values, encounter phase, espoused values, hierarchy culture, market culture, mentoring, onboarding, organizational culture, organizational socialization Reading: p. 36-54 (just the top of...
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...The Little Book of Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street, 9-‐96 New York, NY 10012 Email: adamodar@stern.nyu.edu Phone: 212-‐998-‐0340 First draft: October 14, 2010 Preface Knowing the value of an asset may not be a prerequisite for investing or a guarantee for success, but it does help us make more informed judgments. For most investors, though, valuing an asset seems to be a task that is far too complex and complicated for their skill sets. Consequently, they either depend upon those that they regard as professionals (equity research analysts, appraisers) for their valuations or ignore value entirely when investing. In this book, I hope to show that valuation, at its core, is simple and that anyone who is willing to spend some time collecting information and analyzing it, can ...
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...Ups and Downs: Valuing Cyclical and Commodity Companies Aswath Damodaran Stern School of Business, New York University September 2009 Ups and Downs: Valuing Cyclical and Commodity Companies Abstract Cyclical and commodity companies share a common feature, insofar as their value is often more dependent on the movement of a macro variable (the commodity price or the growth in the underlying economy) than it is on firm specific characteristics. Thus, the value of an oil company is inextricably linked to the price of oil just as the value of a cyclical company is tied to how well the economy is doing. Since both commodity prices and economies move in cycles, the biggest problem we face in valuing companies tied to either is that the earnings and cash flows reported in the most recent year are a function of where we are in the cycle, and extrapolating those numbers into the future can result in serious misvaluations. In this paper, we look at the consequences of this dependence on cycles and how best to value companies that are exposed to this problem. Uncertainty and volatility are endemic to valuation, but cyclical and commodity companies have volatility thrust upon them by external factors – the ups and downs of the economy with cyclical companies, and movements in commodity prices with commodity companies. As a consequence, even mature cyclical and commodity companies have volatile earnings and cash flows. When valuing these companies, the danger of focusing on the most recent...
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