Human Resource Accounting

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Authors

Foran, Bobbi

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1995-04-01

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Abstract

According to Charles P. Edmonds (1989), "People are our most important asset." (p. 42) This appears to be especially true as the global economy changes from an agricultural and industrial based economy to a service oriented one. In a service oriented economy, people are the product. Whether they are accountants, computer programmers, or retail sales clerks, it is the service they provide that allows their companies to prosper. Yet as Edmonds (1989) states: "an analysis of company financial statements reveals no human assets. Although everyone agrees people are important to an organization, no one knows how to place a monetary value on their importance." (p. 42) This thesis focuses on determining the monetary value of human resources and accounting for them on financial statements.

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