A Dynamic Practice of Human Resource Accounting (HRA) for Financial Sustainability of Developing Nations: A Study on Bangladesh

Abstract

Human resource is the combination of individuals who make up the overall workforce of an institution, organization or economy. The financial sustainability of developing nations is truly depending on the accurate valuation of this vital resource. The main objectives of the study are(i) evaluate the method of presenting HRA information in the annual financial statements(ii) determine HRA methods and models, mainly the substantial use of Lev & Schwartz model, and (iii) unearth the relation with the other accounting variables for the purpose of human financial reporting. Both Primary and secondary date have been used in the present study. Secondary data have been collected through perusal of existing literature viz, research works, relevant articles, annual reports and web sites. Primary data have been collected through questionnaire method. Relevant data have been collected from 6 reputed organizations of Bangladesh. This study has demonstrated the vast use of Lev & Schwartz Model of HRA, in spite of other criticized models, from different sides regarding its applicability. The study also depicts the applicability in wide variety of organization of such model especially in some public and private sectors. The paper recommends that HRA should be absorbed by the government and policy maker along with other professional & accounting bodies at national and international levels for the valuation and reporting standards of valuable asset, Human.