ACCOUNTING AND REPORTING PRACTICES OF HUMAN RESOURCES IN CEMENT CORPORATION OF INDIA: A CASE STUDY
Human Resources otherwise known as Human Assets are of vital significance and importance to an entity. It constitutes a primary segment in the total assets of an organisation held by it. Although every entity proclaim that the human assets are their most precious and valuable asset but at the same time they fail to recognize the value of it in their annual reports. Human resource can also be called the mother resources because it is the only medium through which every other resource viz material, machines, methods and money are coordinated, controlled, directed and organized. The present study focused on the Accounting and Disclosure practices of Human assets of Cement Corporation of India. CCI is practicing the Human Resource Accounting since 1979-80 and is following the Lev & Schwartz model to calculate the value of human assets and report it in its Annual Report. In this study the human asset is compared with other variables like employee cost, total assets and NPBT to find out the return on human asset in the corporation. This study highlighted that the corporation is giving importance to its employees and treated them as financial Assets and discloses the value of human assets comprehensively in its annual report. It can be observed from the study that the value of human assets is showing an increasing trend during the whole study period. It also highlighted that the human assets have a significant contribution in the total assets of the corporation. Moreover, CCI is also able to generate the moderate return on its human assets which shows that the human resource is effectively and efficiently utilized during the study period. The study period taken in this paper is from 2008-09 to 2015-16 and the secondary data for the said period obtained from the annual reports of the corporation is used for the analysis.
KEY WORDS: Human Resource Accounting, Human Assets, Financial assets, Lev & Schwartz Model, CCI.