Review on the Development of Human Resource Accounting in China

A review through the origination, development and prospect of Human resource accounting (HRA) is presented based on the study of plentiful literatures about it. HRA is defined as an accounting procedure and method to discriminate and measure the data of human resources, aiming to provide information which is concerned with the change of human resources for the outside people to serve human resource management. It is experiencing a nearly frozen period following its hot time in 1970s after its origination in America in 1960s. The theoretic foundation of HRA is classical plutonomy dated back to 17th century. There were two preeminent persons in the history of HRA. One was Theodore Schultz who established his human capital theory relating education that improves the human capital value with economy; the other was Eric G.FIamholtz who enriched the concept, research methods and application of HRA. In China, the research on HRA started in 1980s beginning with introducing overseas achievements. Multiple views coexist in the academy on whether human resources should be taken as accounting assets and on where to put the HRA information in financial statements. The application of HRA is constrained by the absence of full-blown theories and methodological systems about it as well as difficulties in evaluating human resources and the obstacle of conventional understandings. However, with the conning of intellective economy, the globalization of competition and the entry of China into WTO, the day of HRA will surely come.

Human Resource Accounting： Costs and Benefits Analysis

Human resource accounting is related with intellectual capital in literature. This study adds another dimension for human resource accounting field. It is costs, human resource management related costs. Research topic is intellectual capital and human resource costs in human resource accounting. Research question is that human resource accounting is technic of management accounting. Research methodology is the case study approaches. Main result of study is that human resource costs are recorded in financial accounting and this information might be used by human resource leaders and other executives. Further, human resource of company may be recorded as intellectual capital in balanced sheet. Quantity of record might become total compensation of firms. In conclusion, HR accounting is management accounting technic with its support for information role and decision-making role.

Research on Human Resource Accounting Based on Value Chain

The requirements of management practice make the research of human resource accounting popular. But the difficulty of calculation hinders the implementation of human resource accounting. The paper selects observes the crossing field of management and economics, human resource accounting based on value chain. The paper explains that the present human resource accounting measurement should be innovated, and proposes that the human capital can be divided into general human capital and critical human capital according to the role on value chain, and makes color measurement.

Study on human resources cost accounting based on standards and general rules

The issue of the new standards for employees＇ salary and general financial rules that include employees＇ salary and relevant expenditures, have a great impact on human resources cost accounting. This paper performs a specialized study on human resources cost and employees＇ salary, accounts setting and accounting treatment for human resources cost accounting, human resources cost report, etc. on the basis of relevant provisions in the new Chinese accounting standards, the general financial rules, international accounting standards, and relevant academic research findings.

Human Resources Accounting

The 21 st century will be the epoch of knowled ge economy. Knowledge economy is to develop economy on the basis of knowledge will surely become the major resources of economy development. Therefore, human resources accounting which provides such information as the ebb and follow of hu man resources investment, the size of the human resources employment, will bec ome the main stream of accounting the time of knowledge economy. To face China ’s reality, to develop economy, and to flourish enterprises, we must combine it with our country’s reality. Study and improve our accounting theories of human r esources, embody the essential contents of stressing knowledge, respecting perso nnel in the design of our present system, and stimulate fundamentally motivation of the work force.

Theoretical discussion and framework design of natural resources balance sheet preparation: Based on double standard goal management

"Decision-making usefulness" and "entrusted performance" are not only the goals to be achieved by natural assets statistics, but also the requirements for the state to implement the resignation of leading cadres for auditing and environmental compensation. After the 18th National Congress was convened, the integration of natural resources and the audit of departing cadres further promoted the development of natural resource balance sheet research. Based on the related theories of the development of natural resource assets, this paper starts with its composition, bases its resources on value-added information transmission, and ecological restoration, combines China's unique natural resources, and discusses the basis for the preparation of China's natural resources balance sheet based on dual objectives, goals and framework design. While investigating the report on natural resources, the new concept of natural assets and liabilities emphasizes the relative independence of assets, namely: economic value and potential ecological benefits; past and contingent liabilities, i.e., due to excessive resources Direct losses brought about by mining and potential ecological costs, remediation costs, and repair costs. Finally, referring to SEEA2012 and combining with the specific conditions of China's natural resources, we will discuss not only the physical measurement but also the value measurement for its framework design, constituent elements, and reporting methods.

Investments in Human Capital： Elements of Investments, Their Valuation, and the Related Financial Performance Ratios

Investments in human capital （employees） include investments in the direct assurance of working abilities, investments in health and well-being, and investments in loyalty to the company. These investments are crucial for the long-term existence and development of a company, but their value is not disclosed on the assets side of the classical balance sheet. The most important argument of the mentioned approach＇s promoters is that the economic benefits stemming from such investments are uncertain. However, investments in human capital are those with the highest long-term benefits for the company. Therefore, human capital is the only element of the business process that can add value. Other elements （equipment, materials, and services） just transfer their value to products and services. In this paper, the elements of investments in human capital and the methods used to evaluate these investments are addressed. In addition, uniquely shaped financial performance ratios related to investments in human capital are presented along with the system of integrated ratios.

How to Evaluate Human Capital？

A company is usually founded by individuals striving to achieve their own or broader goals. Goal achievement related to a company＇s operations is called business or the business process. Human capital （man＇s work, employees） is an important element of the business process, however its value is not disclosed on the assets side of the classical balance sheet. In order to shown assets, human capital has to be evaluated. Evaluation can be made in monetary or non-monetary terms. Non-monetary models for evaluating human capital include organisational and behavioural variables. These variables are not expressed in monetary terms, however, based on changes in their quality, one can assume the increased or decreased value of human capital within the company. The value of non-monetary models should not be underestimated, however monetary models are of greater importance. In this article, the most significant non-monetary and monetary models of human capital evaluation are discussed. Among non-monetary models the Michigan, Flamholz, and Ogan models are discussed. Among monetary models the replacement costs model, the opportunity costs model, the discounted wages and salaries model, and originally created dynamic model are discussed. A descriptive approach is used to identify the basic characteristics of existing models for evaluating human capital. According to these findings a different approach is taken in developing an original model. Dynamic model can efficiently overcome most of the practical problems and can be used as an appropriate estimator of human capital value expressed in monetary terms. The research limitations are that the dynamic model has not been sufficiently verified in practice. The model could prove to be directly applicable in those enterprises that would like to define the value of their human capital.

The Accounting for Carbon Sequence and Oxygen Release of Forest Resources and the Case Study

The paper reviewed the references of carbon sequence and oxygen release of forest resources. The dynastic physical accounting model is established, and benefit transfer model is adopted to calculate willing to pay for carbon sequence and oxygen. Benghe Forestry Farm of Linyi Prefecture of Shandong Province is selected as the case study area, the accounting result is presented in the paper.

Study on Integrated Accounting for Natural Resource &Economy

The discussion of integrated accounting for natural resources and economy under the framework of sustainable development has received increased attention by the international society. By now,two methods are noticable, one is so called “direct” method modifying the core system of the SNA itself with natural resource factors, and the other is so called “indirected (satellite)” method which is to develop an SNA satellite system for integrated accounting. Based on the idea of the latter, linkage between natural resources accounting and economy accounting is analysed in the three in one accounts system of core accounts, satellite accounts, linkage accounts in this paper.