Human Resource Accounting Impact on Profitability

Abstract

The performance of the organization is dependent upon the performance of the employees who build up the organization. An organization cannot exist by itself; the human resources who work together towards accomplishing its goal build the organization. Hence the organization should enhance the retention of education and training on staff to avoid wastage of knowledgeable investment. Also, the board of accounting standards should incorporate its accounting principle for the valuation and disclosure of human resource accounting. So this study was made to study the impact of human resource accounting on the profitability of a private sector bank in India from 2008 to 2018. Analysis using the correlation and regression technique was made on the secondary data obtained from the private bank. Findings revealed that there is a significant relationship between the indicators of human resource cost and earnings of the bank.

Keywords-Employee Cost, Human Resource Accounting, Profitability.