Discussion Of Theory And Practice About Accounting Of Human Capital In Enterprises

With the advent of knowledge economic age, the effects of human capital in the management of corporations become more and more important. But the present accounting system still excludes human capital from accounting; the economical value of human capital is only set out simply as one kind of expense cost of corporation's business operations; while human asset and human capital are not classified and measured to provide the users of statements with references. Moreover, in the theory of present equity, only equity of physical capital was accepted, while equity of human capital was ignored; only compensation right and income distribution right of the owners of physical capital were affirmed, while income distribution outside compensation was disregarded. In fact, the operational production of a company is the result of the effects from kinds of production factors, among which human capital contributes mostly. The way of present accounting beats the enthusiasm of the owner of human capital. It shows that the present accounting mode can't meet the needs of social development obviously. In order to change this situation, we need to measure human capital, establish the legal status of human capital equity, and let the carrier of human capital participate in distribution of net profit after tax.Whereas the former reasons, and at present accounting of human capital is still in the period of discussion, so we suggest that we should take two steps to measure human capital on the basis of research about human capital theory and human resource accounting: the first step is to realize the transition from present accounting to human capital accounting in view of human resource value measurement; the second step is to measure human capital in view of human capital equity. We discuss these two aspects in chapter three, four and five.This paper includes five chapters, and the contents are as follows: we retrospect the process of theory of human capital, and define the meaning of human resource, then study its characteristics, at last we make a difference among human capital, human resource and human asset. Human capital theory provides the academic foundation for analyzing the value measurement of human resource and accounting of human capital, while human capital accounting is the result of quantitative analysis of human capital theory. We discuss several basic problems during the accounting of human capital in chapter two: assets attributes of human resource, objects, aim and basic hypothesis of human capital accounting. We discuss value measurement of humanresource in chapter three. Human resource value measurement includes cost method and value approach. Cost method takes actual expenses of human resource as the value of human asset, while value approach takes the intended value of human resource as the value of human asset. We start with the problems existing in equity theory of present accounting in chapter four. Then we study some problems such as establishment and distribution of human capital equity. On the basis of chapter four, we provide the methods of how to set up the measurement account of human capital and how to deal with accounting operations in chapter five.The innovation of this paper consists in compiling a briefcase of a given corporation on the basis of research achievement-setup of accounting of human capital and method of accounting operation.