Modelling a Monetary Valuation Tool for Human Resource Accounting Practice in Nigeria

Authors: Ogenyi, Mary Ada

Issue Date: 2017

Publisher: University of Jos


The conventional accounting practice has been faulted for failing to supply adequate and relevant information required for investment decision-making because annual reports lack monetary information on human resources. To fill the gaps created by this inadequacy and keep pace with economic reality, several organisations in both developing and developed countries such as India, Jordan, Sweden, Denmark, the United States, and Great Britain have voluntarily, embraced monetary Human Resource Accounting (HRA) practice, which involves the monetary valuation of human resources, however, companies in Nigeria are yet to key into this practice. The study, therefore, set out to model a monetary valuation tool for HRApractice in Nigeria. The specific objectives were to ascertain the extent of HRA practice in Nigeria; examine the differences in HRA practices between Nigeria and India, a country known for human resource valuation; and develop a reporting format for HRA practice in Nigeria. Secondary data were collected from companies drawn from both countries by the means of content analysis. Both descriptive and inferential tools were used to analyse the data collected. Two hypotheses were formulated and tested at a 5 % level of significance with the aid of Independent samples t-test. It was found that the extent of HRA practice in Nigeria was significantly low, and monetary valuation constituted the major difference between Nigeria and India in HRA practice. The study contributed to knowledge by developing an HRA practice checklist and proposed a monetary valuation tool- the “Modified Lev and Schwartz Model” for HRA practice in Nigeria. The study recommended voluntary HRA practice; public disclosure of HRA information as a separate report; and the adoption of the proposed HRA valuation model and reporting formats.

Description: A Thesis in the Department of ACCOUNTING, Faculty of Management Sciences Submitted to the School of Postgraduate Studies, University of Jos, in partial fulfillment of the requirements for the award of the degree of DOCTOR OF PHILOSOPHY IN ACCOUNTING of the UNIVERSITY OF JOS.