Human Resource Accounting and international financial reporting standards (pros and Cons)

Accounting is a global language, yet it varies from society to society. This explains the inevitability of accounting practice convergence and harmonization. The success of organizations has a lot to do with the efficiency of their human resource. Human resource is becoming more valuable to businesses than ever before. Human Resource Accounting is a recent controversial issue in accounting field; this concept is not new in accounting. However, it involves accounting for expenditure related to human asset in an organisation as opposed to traditional accounting which merely expense these costs and reduces profit which to our mind sub-optimise financial reporting.Human Resource Accounting is a recent controversial issue in accounting field, this concept is not new in accounting. Human resource Accounting (HRA) involves accounting for expenditure related to human asset in an organisation as opposed to traditional accounting which merely expenses these costs and reduces profit which to our mind sub-optimises financial reporting. The study therefore explored the relationship between international financial reporting standard and human resource accounting. The study used the exploratory method, as various literatures which relates to the subject matters IFRS and Human resource accounting were review to establish a connection between International Financial Reporting Standards and Human Resource Accounting. The study found out from the several literatures reviewed that currently, there is no specific International Financial Reporting Standard that deals with human resources. The study concluded that human resources accounting provides information on human resources to the company and other users of accounting information. Furthermore, some unethical issues that impact negatively on the accuracy of financial reporting might be resolved by human resource accounting