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Human Resource Accounting Disclosures of Bangladeshi Companies

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Human Resource Accounting Disclosures of Bangladeshi Companies
Title: Human Resource Accounting (HRA) Disclosures of Bangladeshi Companies and Its association with corporate characteristics

Introduction:
This study report the relationship between human characteristics and Human Resource Accounting Disclosure (HRAD) level in 15 randomly selected companies of Bangladesh. The relationships are determined using a HRAD index under a number of assumptions. The result of study shows that companies averagely disclose 25% of the total HRAD items. In this study, HRAD has been found significantly related with the size of the company, category of the company (Financial or Non-financial) and overall profitability. However, HRAD has less influence on the age of the company.

Human Resource accounting in a nut shell
Human Resources (HR) are the energies, skills, talents and knowledge of people which are, or which potentially can be applied to production of goods or rendering useful services. Human Resource Accounting (HRA) is the process of identifying and measuring data of human resources and communicating this information to interested parties. Human Resource Accounting is not a new concept in economics. Economists consider human capital or resources as a crucial factor of production, and they explore different ways of measuring its investments in education, health and other areas. Accountants have recognized the value of human resources for at least 70 years ago. Research into true human resource accounting began in the 1960s by Rensis Likert(Bowers,1973). Likert defends long term planning by strong pressure on human resources ‘qualitative variables, resulting in grater benefit in long run. The basic objective of human resource accounting is to facilitate the effective and efficient management of human resources (Porwal, 1993).
According to sveiby’s (1997) human capital, intellectual capital and structural capital concept are similar to other assets. He also argued that organizations acquire HR to generate future revenues, and


References: A. Belkaoui, A. Kahl,.: “Corporate financial disclosure in Canada”, Research Monograph No. 1, Vancouver: Canadian Certified General accountants Association, (1978) A. Kalid: “Association between firm Specific Characteristics and Disclosure: the case of Saudi Arabia” Journal of Managerial Auditing, 21(5), pp 476-496 (2006) American Accounting Association’s Committee on Human Resource Accounting, The Accounting Review Supplement to Volume XLVIII (1973). B. Hansson,: Personnel investments and abnormal return. Journal of Human Resource Costing and Accounting, 2(2), pp9-29. (1997)
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