REPORTING HUMAN ASSET IN PuBLISHED FINANCIAL STATEMENTS
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Department OfBanking & Finance University of Benin Benin City
Abstract
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This paper f ocuses on reporting human asset in published financial statements. The
need is necessitated by the failure of the prevailing accounting practice to recognize
human resource, normally acknowledged to be the most important asset of an
organization, in the balance sheet as an asset, but rather the expenditure relating
thereto (recruitment and training cost, wages and salaries) are simply expensed in the
profit and loss account. This is considered as an anomaly, to the extent that this
resource has value, which exceeds the expensed amount. A more valid treatment of
human resources is to reflect it as an asset in the balance sheet taking into
consideration that it has future economic benefits extending beyond the current period.
The finding of the study was that human asset was considered by the. respondents to be
the most important asset. Respondents were, therefore, in favour of disclosing both
quantitative and qualitative information about human asset in the published financial
statements.
Keywords
HF Commerce, HF5601 Accounting