Human Resources Accounting (HRA) in Nigeria: An Analysis of Challenges

Abstract

This paper analysed the effects of the major challenges to accounting for Human Resources in Nigeria. This study employed the survey method of data collection and adopted a quantitative approach to data analysis. Primary data were collected via a survey instrument from accounting experts selected from among individual Professional Accountants who are registered members of the Association of National Accountants of Nigeria (ANAN) and the Institute of Chartered Accountants of Nigeria (ICAN). Three hypotheses were formulated. The Binomial Logistic Regression, an inferential statistical tool was used to test the null hypotheses at a five per cent level of significance. The principal factors identified as challenges were categorised into three, namely Asset Recognition Criteria (ARC), Disclosure Requirements (DR) and Existing Social Order (ESO). Based on statistical analysis of data collected, the results showed that asset recognition criteria and disclosure requirements were highly responsible for the non-accounting for Human Resources in Nigeria even on a voluntary basis.  Existing social order on the other hand, was statistically significant at 5% but does not hinder accounting for Human Resources in Nigeria. Following the demand for monetary information on human resources by stakeholders, the Accounting Standards and Regulatory Bodies need to re-visit and make pronouncements on HRA. This paper expands literature on HRA by quantitatively analysing the effects of major challenges namely, Asset Recognition Criteria; Disclosure Requirements and Existing Social Order on HRA in Nigeria.

Keywords: Human Resource Accounting; Asset Recognition Criteria; Disclosure Requirements; Existing Social Order