MANAGEMENT ACCOUNTING OF COSTS FOR HUMAN CAPITAL OF THE SERVICE ENTERPRISE

2021 ◽  
Vol 9 (1) ◽  
pp. 4-11
Author(s):  
Oksana Nesterenko ◽  
◽  
Angelika Krutova ◽  
Oksana Blуznіuk ◽  
Olena Zhyliakova ◽  
...  
Keyword(s):  
Human Capital ◽  
Standard Form ◽  
Financial Statements ◽  
Legal Regulation ◽  
Life Cycles ◽  
Intangible Asset ◽  
Data Card ◽  
Main Role ◽  
Accounting System ◽  
Value Assessment

The systematic study, critical assessment of theoretical provisions and current practice of accounting organization of costs for human capital of the service enterprise, improvement of accounting mechanisms for the use of personal human assets and human capital of the enterprise are provided in the article. It is proved that the need to reflect human capital in accounting is due to the following factors: human capital is considered an integral part of national wealth; determining the main role of human knowledge, abilities, qualifications, and education in the process of social production; change of attitude to a person that is the appreciation of its creative potential and intellectual abilities. Characteristic definitions of human capital in aspects of different spheres of its functioning are analyzed. Peculiarities of normative and legal regulation of human capital as an intangible asset under SSAP and IFRS and identification of contradictions in accounting of personnel costs under the current accounting system are considered. The peculiarities of the organization of primary accounting of human capital at the enterprises of the service sphere are considered. It has been proposed to record information on the costs for human capital in terms of the processes of its formation, use, and development in the Employee Data Card (standard form P-2) by introducing an additional Section VI “Costs per employee.” The financial statements of analytics have been improved to Form No.1 of the Balance Sheet (Statement of Financial Condition) by introducing analytics in the first section of liabilities in the item “Additional capital” of information on human capital of the enterprise, which will generate financial statements for full disclosure to stakeholders, especially investors. Suggestions are given for the prospects of further development: research of accounting of costs for personnel of the enterprise depending on the life cycles of personnel and the enterprise, development of theoretical and methodological bases of corporate social reports on human capital, improvement of personnel value assessment methods (especially residual and liquidation value).

scholarly journals Management accounting of costs for human capital of the service enterprise

2021 ◽  
Author(s):  
Larysa Soroka ◽  
◽  
Tаtiana Umanets ◽  
Keyword(s):  
Human Capital ◽  
Standard Form ◽  
Financial Statements ◽  
Legal Regulation ◽  
Life Cycles ◽  
Intangible Asset ◽  
Data Card ◽  
Main Role ◽  
Accounting System ◽  
Value Assessment

The systematic study, critical assessment of theoretical provisions and current practice of accounting organization of costs for human capital of the service enterprise, improvement of accounting mechanisms for the use of personal human assets and human capital of the enterprise are provided in the article. It is proved that the need to reflect human capital in accounting is due to the following factors: human capital is considered an integral part of national wealth; determining the main role of human knowledge, abilities, qualifications, and education in the process of social production; change of attitude to a person that is the appreciation of its creative potential and intellectual abilities. Characteristic definitions of human capital in aspects of different spheres of its functioning are analyzed. Peculiarities of normative and legal regulation of human capital as an intangible asset under SSAP and IFRS and identification of contradictions in accounting of personnel costs under the current accounting system are considered. The peculiarities of the organization of primary accounting of human capital at the enterprises of the service sphere are considered. It has been proposed to record information on the costs for human capital in terms of the processes of its formation, use, and development in the Employee Data Card (standard form P-2) by introducing an additional Section VI “Costs per employee.” The financial statements of analytics have been improved to Form No.1 of the Balance Sheet (Statement of Financial Condition) by introducing analytics in the first section of liabilities in the item “Additional capital” of information on human capital of the enterprise, which will generate financial statements for full disclosure to stakeholders, especially investors. Suggestions are given for the prospects of further development: research of accounting of costs for personnel of the enterprise depending on the life cycles of personnel and the enterprise, development of theoretical and methodological bases of corporate social reports on human capital, improvement of personnel value assessment methods (especially residual and liquidation value).

Evaluating human assets in organizations: a proposal for a literature review

2014 ◽  
Author(s):  
Cristovão Sá Pimenta ◽  
Maria Teresa Proença
Keyword(s):  
Human Capital ◽  
Literature Review ◽  
Intellectual Capital ◽  
Market Value ◽  
Financial Statements ◽  
Financial Accounting ◽  
The Other ◽  
Intangible Asset ◽  
Accounting System ◽  
The One

Human Capital (HC) has been recognized as a decisive fator in the performance of organizations, influencing the results obtained and even the market value of organizations. However, how this intangible asset can be demonstrated and highlighted, remains open to discussion. If highlighted in the financial statements of organizations, one could safely and accurately say that people are an organization’s greatest asset. Furthermore, the need to measure Intellectual Capital (IC) and HC has been profusely discussed. If, on the one hand, a consensus on the acceptability of the measurement has not been difficult to achieve, on the other a consensus about what and how to measure it is not a straightforward task. We intend to discuss how to measure/evaluate HC, considering the needs of the financial accounting system, the need to manage people more effectively, and the need for a proper evaluation and appreciation of organizations in the market. Thus, this article defines our field of research and proposes a revision of some literature on the field of our investigation.

A Human Resource Accounting: A Way to Succeed in Knowledge-Driven Economy

2005 ◽  
Vol 30 (4) ◽  
pp. 381-392
Author(s):  
Aruna Dhade
Keyword(s):  
Human Capital ◽  
Human Resource ◽  
Intangible Assets ◽  
Intangible Asset ◽  
Accounting System ◽  
Human Resource Accounting ◽  
Tangible Assets ◽  
Measurement Tools ◽  
Survival And Growth ◽  
Resource Accounting

In today's knowledge driven economy, mere procurement and management of tangible assets is not the end for survival and growth of an organization. Historically, companies had focused primarily on measuring and managing the tangible assets. There are other assets, which are often overlooked – Intangible Assets. Organizations lead towards success because of inherent intangible assets. The problems start when managers try to measure the intangible wealth with traditional measurement tools available to them. The focus of this paper is to highlight the importance of managing and measuring intangible asset – human capital, which is overlooked in traditional accounting system.

scholarly journals Features of accounting and controlling the finished products movement documentary declaration at enterprises, institutions, organizations of Ukraine

2019 ◽  
pp. 9-14
Author(s):  
Hanna BULKOT ◽  
Olha OSYKA
Keyword(s):  
Product Information ◽  
Financial Statements ◽  
Process Efficiency ◽  
Main Role ◽  
Accounting System ◽  
Operational Cycle ◽  
Document Flow ◽  
And Control ◽  
Financial Result ◽  
Analyze Data

Introduction. Production of finished products and their sale completes the operational cycle in the activity of the enterprise. The enterprise must produce those products that are in demand in the market. The main role in ensuring the competitiveness of the enterprise is played by the system of control over the sale of products and the correct documentation of accounting of the movement of finished products, since these factors affect the financial result, which is a summarizing indicator of the organization. However, a number of conceptual, methodological and organizational aspects of documentation and workflow in the accounting system continue to be debatable and need further investigation. The purpose of this article is to improve the control of the documentation of the movement of finished products and the formation of financial results from its implementation at enterprises. Result. The article analyses question to improve the accounting and control of documenting the movement of finished products and the formation of financial results from its sale at enterprises. The basic tasks of control over the documentation of finished goods accounting at the enterprises in the organization system and the normative legal acts, according to which the documentary verification of the movement of finished products at the enterprise are considered. The main stages of document flow in the statistical workflow schedule are highlighted. Conclusion. Therefore, summarizing all of the above, we can conclude that it is still necessary to disclose the finished product information in the financial statements of the enterprises in more detail, where it will allow users of the financial statements to analyze data on production process efficiency, business activity of the enterprise, profitability of production and sales, as well as accept well-balanced management decisions.

scholarly journals Is fair value currently in compliance with the principle of true and real reflection in the Czech accounting?

2012 ◽  
Vol 60 (4) ◽  
pp. 99-108 ◽  
Author(s):  
Jana Gláserová
Keyword(s):  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Fair Value ◽  
Legal Regulation ◽  
Information Value ◽  
Specific Method ◽  
Accounting System ◽  
Business Entities ◽  
Definition Of

Information value of data provided by the accounting is in significant extent dependent on the method of valuation used in accounting of individual economic operations especially on the method of valuation of individual items in the financial statements. Financial expression of the individual value of assets and liabilities of the company (including the balance sheet of the company), as well as the amount of equity, depend just on specific method of valuation of assets and liabilities that each entity used in the accounting system. This fact has also a crucial influence on the overall level of financial analysis since mostly aggregated data in the appropriate valuation gained from various parts of the financial statements are the input data for financial analysis.Certain items of assets and liabilities are valued at fair value at the balance sheet day in the Czech accounting in compliance with the global developments. The concept of fair value in Czech accounting is regulated by Czech Accounting Act in § 27 paragraph 4 and 5. The Czech regulation of the concept of the fair value is based on its detailed definition of the IAS / IFRS, including cases of practical use.The aim of this paper is to answer the question whether currently the fair value in the Czech accounting reflects the reality, based on definition of its content in accordance with applicable legal regulation. Partial aim is to identify specific cases of its application in the accounting of various types of business entities in the Czech Republic in existing practice. The paper also identifies methodological procedure of recording changes resulting from the valuation or revaluation of various types of assets at fair value, including their impacts on the financial statements. An integral part of the paper is the perspective of IAS / IFRS on fair value in accounting, so the definition of the fair value and also there is historical development of valuation of assets according to IAS / IFRS. The concept of fair value as a possible method of valuation of assets in European accounting law is also mentioned.

Why Do Firms Write Off Their Goodwill? A Comparison of Different Accounting Systems

2015 ◽  
pp. 23-40 ◽  
Author(s):  
Francesco Avallone ◽  
Claudia Gabbioneta ◽  
Paola Ramassa ◽  
Marco Sorrentino
Keyword(s):  
Good Deal ◽  
Financial Statements ◽  
Cash Flows ◽  
Accounting System ◽  
Anglo Saxon ◽  
Accounting Systems ◽  
Ifrs Adoption ◽  
The Future

Increased comparability of financial statements across adopting countries is one of the main objectives of IFRS adoption. The level of achievement of this objective, however, is still debatable. While some studies have documented that crosscountry comparability of financial statements has increased after IFRS adoption, other studies have found that comparability has actually decreased since 2005. We contribute to this debate by studying whether the motivations for goodwill writeoff are the same or vary across countries with different accounting systems. Although a good deal of research has investigated the motivations for goodwill writeoff, our study is the first to analyze whether these motivations vary across countries with different accounting systems. We find that firms that expect low cash flows in the future are more likely to report goodwill write-offs if they are located in countries with an Anglo-Saxon accounting system than if they are located in countries with a Continental accounting system. These results suggest that IFRS are "interpreted" differently in different countries and that harmonization of financial statements has not been fully achieved yet.

Comparison of the perception of overt and covert options in IPSAS financial statements by intergovernmental organizations

Tékhne ◽  
2018 ◽  
Vol 16 (1) ◽  
pp. 28-39
Author(s):  
Berit Adam
Keyword(s):  
Public Sector ◽  
European Commission ◽  
Accounting Standards ◽  
Financial Statements ◽  
Criminal Court ◽  
Intergovernmental Organizations ◽  
Accounting System ◽  
Accrual Accounting ◽  
Public Sector Accounting ◽  
Primary Reference

AbstractSince 2012, the European Commission has embarked on the ambitious project to harmonize public sector accounting rules on all levels of government within Europe, mainly to improve the quality as well as the comparability of financial data. Although International Public Sector Accounting Standards were deemed not to be suitable for a simple take-over because of various reasons, they nevertheless shall function as a primary reference point for developing European Public Sector Accounting Standards. A total of 21 out of 28 central governments have already reformed their accounting standards to accrual accounting, and some of them have also relied on IPSAS in this exercise. Apart from governments, various international and supranational governmental organizations have also since the end of the 2000’s been reforming their accounting system to accrual accounting, and have in the same way relied on existing IPSAS. This paper explores accounting practices found in ten intergovernmental organizations (Commonwealth Secretariat, Council of Europe, European Commission, IAEA, INTERPOL, ITER, NAPMA, OECD, International Criminal Court, WFP) whose statements are prepared in compliance with IPSAS. It analyzes how overt and covert options contained in IPSAS with relevance to the activities of intergovernmental organizations are exercised and evaluates in which areas of accounting material differences in accounting practices can be found, which may hinder the comparability of financial statements prepared on the basis of IPSAS.

THE RIGHT TO USE HUMAN CAPITAL IN ACCOUNTING

2017 ◽  
Author(s):  
Oleksandra Mazina ◽  
◽  
Serhii Rohoznyi ◽  
Olena Kareva ◽  
◽  
...  
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Accounting System ◽  
Mathematical Methods ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Employment Contract ◽  
Sustainable Economic Development ◽  
Initial Cost ◽  
The Right

The key factor of sustainable economic development is investment support for human capital development aimed at generating innovative knowledge, professional skills, support and development of abilities and talents, qualitative human characteristics without which economic and social growth is excluded. The study of human capital and the right to use it as objects of an accounting system designed to provide reliable information to users will help society to control the process of human development as a core value and driving force in achieving sustainable economic development from the micro to the global level. In this study, the methods for assessing human capital as an object of accounting «The right to use human capital» are applied according to the methodology of the International Financial Reporting Standard 16 "Lease". The condition for applying the methodology of this standard is the analogy with the employment contract between the business entity and the employee with the terms of the lease agreement. The measurement of such an asset is based on the initial measurement of the lease liability, which is calculated as the present value of future lease payments. Such an asset is subject to straight-line amortization over the life of the contract. Additional investment in human capital at the start of a contract, or in the process of execution, increases the value of the Right to Use Human Capital. To calculate the initial cost of an asset and its depreciation during the term of the employment contract, you can use the existing mathematical methods from the standard list of the EXCEL office program. In this study, using a conditional example of an employment contract for a period of five years, a minimum wage of UAH 6,000 and a discount rate of 7%, the calculation of the initial cost of the «Right to use human capital» is provided.

Exploring the impact of intellectual capital on company reputation and performance

2018 ◽  
Vol 19 (5) ◽  
pp. 915-934 ◽  
Author(s):  
Gianluca Ginesti ◽  
Adele Caldarelli ◽  
Annamaria Zampella
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Corporate Reputation ◽  
Intangible Asset ◽  
Competition Authority ◽  
Data Set ◽  
Content Type ◽  
Capital Efficiency ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of intellectual capital (IC) on the reputation and performance of Italian companies. Design/methodology/approach The paper exploits a unique data set of 452 non-listed companies that obtained a reputational assessment from the Italian Competition Authority (ICA). To test the hypotheses, this study implemented several regression analyses. Findings Results support the argument that human capital efficiency is a key driver of corporate reputation. Findings also reveal that companies, which obtained reputational rating under ICA scrutiny, show a positive relationship between IC elements and various measures of financial performance. Research limitations/implications The study focuses on a single country; it is not free from the imprecisions of Pulic’s VAIC model. Practical implications This paper recommends companies that are interested to achieve a robust reputation should consider the human capital as a strategic intangible asset. Second, the results suggest that companies with an ICA reputational rating are able to leverage their intangibles to potentiate performance and competitiveness. Originality/value This is the first empirical investigation on the contribution of IC in generating value for corporate reputation. Additionally, the study contributes to the literature on the link between IC and performance by examining a sample of firms not yet explored in prior research.

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