...as to whether the human resources of an organization can be considered as an asset and treated accordingly in the accounting system. There are two schools of thought. One says that human resource is an asset and the other does not agree with this. Now let us see what is an asset? Asset is anything which is owned by the entity to derive service in future and should have legally enforceable claim. As such there is no guarantee of deriving benefits from the existing Human resources in future and has no sales value like other assets. Therefore, legally, human resource is not an asset claims one school of thought. Besides, company law also does not consider it as an asset. But the other school is of the opinion that the "human...
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...CHAPTER 2 Overview of Business Processes SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 1. Three different types of information exist in Table 2.1: 1. Internally-generated financial data 2. Internally-generated operating data 3. Externally-generated data. Internally generated financial data would be captured directly on source documents that are processed by the AIS and would be reported in traditional financial statements. Internally generated operating data can be captured in two ways. Some of this data (e.g., time worked) would be captured on source documents. Other data (e.g., employee skills) would traditionally be captured and stored by an information system that is not part of the AIS itself. The AIS, however, should be redesigned so as to integrate this data with the other transaction-oriented data. Some of the data (e.g., information on market share and customer satisfaction) must come from external sources. The AIS should be designed to store this data in an integrated manner with internally generated data. 2.2 The fact that all documents are prenumbered provides a means for accounting for their use and for detecting unrecorded transactions. Thus, a missing check indicates a meal for which a customer did not pay. Since each server has his or her own set of checks, it is also easy to identify which server was responsible for that customer. This policy may help to deter theft (e.g., serving friends and not requiring...
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...for the Degree of B.com Honours in Accountancy and Finance under the University of Calcutta.) A Survey on Accounting & Reporting of Intangible Assets in some selected Indian companies Submitted by Name: MAITREYEE MUKHERJEE Registration no: 043-1221-0272-10 Roll no: Name of the college: Heramba Chandra College. Supervised by Name of the supervisor: JAYANTA GHOSH Name of the college: Heramba Chandra College. BACKGROUND: In 1494, a mathematically minded Veteran monk named Luca Pacioli published his “Summa de Arithmetica, Geometrica”, the first accounting textbook. It illustrated double-entry accounting, a system that makes the modern corporation manageable, even possible. Today, half a millennium later, Pacioli’s process, still pretty much intact, is being challenged like never before. Pacioli’s accounting system lets businesses keep track of changes in their assets. But this system deals primarily with tangible assets such as cash, inventory, investments, receivables, property, plant, and equipment. What go unrecorded are intangible assets such as quality of management, customer loyalty, information infrastructure, trade secrets, patents, goodwill, research, and, considered by some, the ultimate...
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...Human Resource Accounting Human Resource Accounting is the process of assigning, budgeting, and reporting the cost of human resources incurred in an organization, including wages and salaries and training expenses. Human Resource Accounting is the activity of knowing the cost invested for employees towards their recruitment, training them, payment of salaries & other benefits paid and in return knowing their contribution to organisation towards it's profitability. Contemporary Issues •Human Resource Audit ◦Objectives and benefits of Human Resource Auditing ◦Human Resource Auditing Process •Human Resource Accounting ◦Methods of Human Resource Accounting •Human Resource Information Systems •Outsourcing and Crowdsourcing •Employer Brand •Temping or Temporary Staffing •Attrition •Call centers •Exit interviews •Stress Management •Balanced scorecard •Competency mapping •Human Resource Benchmarking •Employee absenteeism The American Accounting Association’s Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as “the process of identifying and measuring data about human resources and communicating this information to interested parties”. HRA, thus, not only involves measurement of all the costs/ investments associated with the recruitment, placement, training and development of employees, but also the quantification of the economic value of the people in an organisation. Flamholtz (1971) too has offered a similar...
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...activity, control and management of a business. Recording transactions involves the recording of finical transactions, weather the recording is a prediction or actual records this will help the owner or manager of the organisation see what money is coming in and out of the business and will help them plan for future, it also helps allows the business owner to see if the business is a success or failing if failing the owner can make changes to make the business more success and earn more money. Recording transactions also helps the business if they are paying bills or owed money they can recognise bills or payments to them haven’t been paid and they can chase them up. If payments are not paid the business can get into trouble with the HMRC (Human Management Revenue and Customs) Monitoring accounting within an organisation will be updated on a regular basis, doing this will provide a clear indication of how the business is doing on terms of sales, receiving payments and paying out payments. Monitoring activity should involve keeping an eye on the bank balance to ensure there are sufficient funds to meet day to day expenses. The owner of the organisations would notice if the money going out of the bank was more than the sales coming through to the business this would make the owner make changes to his business. To be able to have control would happen through recording transactions and monitoring accounting if they are done properly and the organisation continue to have the correct...
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...–H4020 Human Resource Accounting HUMAN RESOURCE ACCOUNTING UNIT – I The Non accounting of human resources and the change occurring therein, of an organization may provide a poor picture of the profits and profitability of the organization. Likert Objectives of the Study: This unit aims to provide a basis for the conceptual framework of Human Resource Accounting. An attempt is made to highlight the following aspects. Development of the Concept of HRA An Historical Score Card Meaning and Definition of HRA Importance Objectives of Human Resource Accounting Limitations of Human Resource Accounting HRA for managers & HR Professionals Investment in Human Resources Quality of Work Force and Organizations’ Performance Efficient use of Human Resource Enumerating the Assets Calculating the Market Value of Assets Human Capital. 1 MBA –H4020 Human Resource Accounting INTRODUCTION To ensure growth and development of any orgnisation, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The original health of the organization is indicated by the human behaviour variables, like group loyalty, skill, motivation and capacity for effective interaction, communication and decision making. Men, materials, machines, money and methods are the resources required for an organization. These resources are broadly classified into two categories, viz., animate and inanimate (human and physical)...
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...information to evaluate the consequences of their financial decisions. To be successful it is essential that you know the precise financial condition of your business. Accurate and regular financial information allows you to monitor the success or failure of your business and provides you with information to evaluate the consequences of your financial decisions. Regularly monitoring your business activities will help you operate more efficiently control your cash flow and increase your profitability. Solid information about your business depends completely accurate and timely record keeping practices. Accurate financial records will allow you to •identify your income and expenses to create a profit and loss statement •identify your business assets and liabilities to create a balance sheet •identify the timing of income and expenses to create a cash flow forecast •compare your business operations with industry benchmarks * prepare accurate business activity statements and tax returns so you don’t over or underpay your taxes 3. * identify the data that needs to be collected * identify the appropriate source of data * ensure currency, reliability and validity of data * classify and code the data according to accounting and organisational principles * calculate costs, profit/ loss and/ or breakeven analyses etc where necessary * assess the results of data analysis and provide formal or informal reports on the outcomes * keep accurate and secure records...
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...The County of San Diego CAFR Analysis Introduction The first recorded history of San Diego started when San Diego Bay was first discovered by the Europeans in the present state of California. Native Americans tribe which is named “Kumeyaay” had been living in San Diego area for as long as 12,000 years before the Portuguese explorers discovered this area in 1542. After about 200 years, Father Junipero Serra established the first permanent European settlements in California, so that San Diego is also considered the “birthplace” of California. In 1848, San Diego became a part of the U.S. and was named San Diego County on February 18, 1850. San Diego remained a small town for decades, due to the development and establishment of Military bases, it expanded quickly after 1880. During and after World War II, the economy of San Diego grew rapidly based on the military, defense industries, tourism, international trade, and manufacturing. San Diego County is the most southwestern county in the United State, which located in the southwestern corner of the States of California. Its county seat and largest city is San Diego and it is now the 8th largest city in the United States. According to the estimation by U.S. Census Bureau, San Diego County's estimated population for January 1, 2014 was 3,194,362 people and household population is 1,076,483 (State & County Quick Facts, 2014). An increase of approximately 1.4 % comparing with the estimated 3,150,178 people in January...
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...long time. In the changing circumstances of global climate it is high time that we wake up and recognize the contribution of the environment to sustain our economy. For a long time, conventional indicators like Gross Domestic Product (GDP), Gross National Product (GNP) and Net Domestic Product (NDP) were used around the world to construct national accounts and as a measure of the economic progress of a country and standard of living. However, these traditional measures of economic activity failed to be responsive because of the fact that economy cannot operate without the support of the natural environment. National accounts allow depreciation allowance for manufactured assets, while the contributions of environmental assets to economy are not valued and hence no depreciation allowance is made for these assets. Thus, in Bangladesh, omission of the degradation and depletion of the country's natural capital will lead to over estimation of the national income figures. Why we will change Governments all over the world develop economic data systems familiar as System of National Accounts (SNA) to calculate macroeconomic indicators like GDP, GNP, savings rates, and trade balance figures, using a framework developed, supported, and disseminated by the United Nations Statistical Division (UNSTAT). The time to reform the SNA has arisen because the accounts as...
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...HUMAN RESOURCE ACCOUNTING UNIT – I The Non accounting of human resources and the change occurring therein, of an organization may provide a poor picture of the profits and profitability of the organization. Likert Objectives of the Study: This unit aims to provide a basis for the conceptual framework of Human Resource Accounting. An attempt is made to highlight the following aspects. Development of the Concept of HRA An Historical Score Card Meaning and Definition of HRA Importance Objectives of Human Resource Accounting Limitations of Human Resource Accounting HRA for managers & HR Professionals Investment in Human Resources Quality of Work Force and Organizations‟ Performance Efficient use of Human Resource Enumerating the Assets Calculating the Market Value of Assets Human Capital. INTRODUCTION To ensure growth and development of any orgnisation, the efficiency of people must be augmented in the right perspective. Without human resources, 1 the other resources cannot be operationally effective. The original health of the organization is indicated by the human behaviour variables, like group loyalty, skill, motivation and capacity for effective interaction, communication and decision making. Men, materials, machines, money and methods are the resources required for an organization. These resources are broadly classified into two categories, viz., animate and inanimate (human and physical) resources. Men, otherwise ...
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...LJB Company Internal Controls Evaluation and Assessment CONTENTS: 1. Introduction and Scope ……………………….Page 1 2. Results and Findings……………………………Page 2 3. Recommendations………………………………Page 3 4. Reference Citations………………………….…Page 4 LJB COMPANY - Internal Controls Evaluation and Assessment Introduction and Scope: This evaluation looks at the current internal control system at LBJ Company, assesses for compliance with requirements for Initial Public Offering (IPO) and provides recommendations for strengthening the primary components of an effective Internal Control System. Internal Control System Primary Components 1. A control environment: It is the responsibility of top management to make it clear that the organization values integrity and that unethical activity will not be tolerated. 2. Risk assessment: Companies must identify and analyze the various factors that create risk for the business and must determine how to manage these risks. 3. Control activities: To reduce the occurrence of fraud, management must design policies and procedures to address the specific risks faced by the company. 4. Information and communication: The internal control system must capture and communicate all pertinent information both down and up the organization, as well as communicate information to appropriate external parties. 5. Monitoring: Internal control systems must be monitored periodically for their adequacy. Significant deficiencies need to be reported...
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...company: its Human Resources. The people that make up a company are that organization’s unique and biggest asset. Human resources are the set of individuals who make up the workforce of an organization, business sector or an economy. We can say that the people who make up a company's workforce its human resources are considered to be an asset to the company. They give unique position to their own companies. If we want to reach the final destination of the organization, human resource is the road for it. If we look at the developed countries we can see that they’ve a strong position in the world because they know how to properly utilize their work force. But in our country the human resource sector is still running behind of the other countries. This is happening because we’ve enough work forces but we don’t know how to utilize them, we have not enough HR departments in every company in our country. The multinational companies are ruling in our country because they are using the human capital efficiently but the local companies still need fight with them as they haven’t set a formal HR department in their organization. It is the human resources who are operating the whole organization. A company is more likely to be successful if it manages all of its resources. Effective HR departments allow and encourage the company’s employees by investing on the employee to get their best, which in turn contributes to the success of those companies. We believe that Human Resources are the most...
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...The inclusive dates for the fiscal year for the Comprehensive Annual Financial Report (CAFR) for the City of San Francisco, CA are 2010-11. The independent auditor for San Francisco’s CAFR is Macia Gini & O’Connell LLP (MGO) located at 505 14th Street in Oakland, California. The auditor states that their audit was in accordance with auditing standards generally accepted in the United States of America. Those statements require the planning and performing of the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The auditor did express unqualified opinions based on the audit and the reports of other auditors, on the respective financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information. However, the financial statements of the San Francisco International Airport, San Francisco Water Enterprise, Hetch Hetchy Water and Power, San Francisco Municipal Transportation Agency, San Francisco Wastewater Enterprise, San Francisco Market Corporation, and the Health Service System were not audited. The City of San Francisco’s organization chart contains several levels: the citizens elect a mayor and the city administrator is appointed. Also elected is the assessor/recorder, Board of Supervisors, City Attorney, District Attorney, Public Defender, Sherriff, Superior Court, and the Treasurer/Tax...
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...11 Issues Chapter of Reporting, Disclosure and Financial Analysis Questions for Review and Discussion 1. The two main adjustment are likely to be the addition of capital assets and longterm obligations. 2. The main adjustments are likely to be: the addition of depreciation expense and gains or losses from the sale of capital assets and the deletion of amounts spent to acquire capital assets and the proceeds from the sale of capital assets the deletion of long-term debt proceeds and amounts spent to repay long-term debts and the addition of any gain or loss on the retirement of debt and the amortization of any debt premium or discount. 3. The key criterion is financial accountability the primary government either appoints a voting majority of the units governing body or a majority of the units governing body is composed of primary government officials and the primary government is able to impose its will upon the potential component unit or there is the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. 4. Discrete presentation is when one or more component units are reported in separate columns, in addition to those pertaining to the primary government. Blending is when the component units transactions and balances are reported as if they were part of the primary government that is, the component units funds are accounted for just as they were funds of the primary government. Blending is...
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...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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