Human Resource Accounting Toward Human Welfare

Abstract

Objective: The debate on human resource accounting is still ongoing, namely in particular the accounting treatment on the recognition of all human resource expenditures, whether recognized as an expense or an asset. As the company’s driving force, humans have an important role but are recognized as an expense in the financial statements. Therefore, this study aimed to develop an alternative model in human resource accounting.Design: This study was structured to build a human resource accounting model by synthesizing the biological asset concept in recognition and measurement. It also used Homo religious analysis to clarify the nature and treatment of human resource accounting.Finding: The concept of human resource accounting was compiled through the growth, production, degeneration, and procreation cycle. Human resource accounting based on homo economicus is far from human values. It only touches on material but not other aspects of human welfare. Additionally, the value was added by synthesizing homo religious as a model for developing human resource accounting. This value complements the position of human resource accounting to cover the aporetic problems between humans, accounting, and God.Theoretical and practical implications: First, human resource accounting is structured based on its characteristics, recognition, and measurement through several stages. This is expected to explain the position of human resources as a burden or an asset. Furthermore, the structuring should have a materialistic economic motive and must be based on God's law in achieving human welfare. Second, it is important to treat human resources by aligning the soul, nature, and God as a manifestation of added value. This aims to balance human resources and the company and be reported in financial statements narratively.Originality: This study referred to the post-secular religious currents to contribute to critical and interdisciplinary awareness in accounting. It aimed to complete human resource accounting development by tracing humans as homo religious.