The Role of Human Resource Accounting in the Business Environment

Abstract

In this chapter, human resources accounting is comprehensively analyzed. Human capital has been often neglected or inaccurately reported in the financial statements due to its nature. In the new economy, financial market participants such as investors, creditors, and shareholders would like to get information about the firm's investment in human capital. Over the last decades, some accounting methods have been developed for human capital. In this chapter, the methods used in the accounting treatment of human capital are analyzed, and a total of 288 operating reports of banks listed on Borsa Istanbul for the period between 2010 and 2017 are examined through content analysis. The results of content analysis indicate that there is a growing trend in human capital disclosure by banks listed on Borsa Istanbul between the period of 2010 and 2017, implying that banks listed on Borsa Istanbul have become more aware of the importance of human capital.