HUMAN RESOURCE ACCOUNTING: ITS CONSTRAINTS AND LIMITATIONS IN THE PHILIPPINES
Journal: Advanced Management Science (AMS)
Author: Venus C. Ibarra
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
This study is a sequel to the article previously written on awareness of Human Resource Accounting Practices and Costing (HRAC) of companies located in the Philippines. This study aims to find out if the recommended accounting system is acceptable by companies and its constraints and limitations in adapting HRA in the Philippines. The researcher used questionnaire/interview to collect the data from respondents representing forty (40) companies in Metro Manila. The results showed that companies were not interested in adapting any accounting system for human resources at this time. Constraints include no law recognizing humans as assets, no clear guideliness, lack industry standards and lack of universal acceptable human valuation. Limitations in adapting HRA are problems in measuring and amortizing value of employees, the need for more time and resources, morale problems in considering employees as assets, which may dehumanize them, and the need for more time and planning to get used to the accounting system. Some companies, however, are open to the idea of using HRA if given proper guidelines, standards and rules. It is recommended that Philippines companies focus on making HRA an organizational goal and to have standardized procedures to measure human capital.