Employees have long been recognised by managers as being of substantial economic value to an employing
organisation, yet traditionally that value has been ignored in the accounting systems of those organisations. In the
past decade scrious consideration has been given to the valuation of human resources in a manner that would fall
within the constraints currently affecting the financial disclosure policies of business entities. This paper focuses atten
tion on the parallel between human resources and leascd resources, and notes certain implications for the disclosure of
the value of a certain group of human resources.
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References
1.
Chairman's Address.The Commercial Bunk of Australia Lid, 1978, p. 13,
2.
Conamercial Banking Company of Sydney Lid. , Annual Report, September 1978, p. 6.
3.
American Accounting Association, Committee on Human Resource Accounting, Supplement to the Accounting Review, 1973, pp. 168-185.
4.
A large number of articles describe this experiment, for example, Pyle, W.C., "Human Resource Accounting", Financial. Analvsis Journal, Sept./Oct. 1970, pp. 69-78; Hyatt, J., "R.G. Barry Includes Its Employees' Value on Its Balance Sheet", The Wall Street Journal, 3/4/1970, p. 14, and Likert, R. and Pyle, W.A., "People are Capital investment at R.G. Barry Corp." Management Accounting, Nov. 1971 , pp. 53-55. 63.
5.
Flamholtz, E. , "The Theory and Measurement of an Individual's Value to an Organisation", unpublished Ph.D. dissertation. The University of Michigan, 1969.
6.
Likert, R. and Bowers, D.G., "Organisational Theory and Human Resource Accounting", American Psychologist, Sept. 1968, p. 585.
7.
Hermanson, R.H. , Accounting for Human Resources, Occasional Paper No. 14, Bureau of Business and Economic Research, Graduate School of Business Administration, Michigan State University, 1964.
8.
Lev, B. and Schwartz, A., "On the Use of the Economic Concept of Human Capital in Financial Statements ", The Accounting Review, January 1971, pp. 103-112.
9.
Flamholtz, E.G., "A Model for Human Resource Valuation: A Stochastic Process with Service Rewards", The Accounting Reriew, April 1971, pp. 253-267.
10.
Committee on Human Resource Accounting, American Accounting Association, op. cit., p. 174.
11.
Ibid., p. 173-4.
12.
Gant, D.G. , "Illusions in Lease Financing'', Harvard Bust-ness Reriew, March/April 1959, p. 122.
13.
Financial Accounting Standards Board, Stamford, Connecticutt, Statement of Financial Standard , "Accounting for Leases", November 1976.
14.
Committee on Human Resource Accounting, American Accounting Association, op. cit., p. 174.
15.
See, for example, Flamholtz, E., "A model for Human Resource Valuation: A Stochastic Process with Service Rewards", op. cit.
16.
Flamholtz, E., "The Theory and Measurement of an Individual's Value to an Organisation", op. cit.
