MODELLING A MONETARY VALUATION TOOL FOR HUMAN RESOURCE ACCOUNTING PRACTICE IN NIGERIA

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.In order tofill the gaps created by this inadequacy and keep pace with economic reality, a number of organisations in both developing and developed countries such as India, Jordan, Sweden, Denmark, United States and Great Britain have voluntarily, embraced monetary Human Resource Accounting (HRA) practice,which involves 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 data collected.Two hypotheses were formulated and tested at 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 constitutedthe major difference between Nigeria and India in HRA practice. The study contributed to knowledge by developing a HRA practice checklist and proposed a monetary valuation tool- the “Modified Lev and Schwartz Model” for HRA practice in Nigeria.The study recommendedvoluntary HRA practice; a public disclosure of HRA information as a separate report; and the adoption of the proposed HRA valuation model and reporting formats.