The Study on the Impact of Human Resource Accounting on Performance Evaluation

Human Resources accounting became one of the most important assets for both, the accountants and the specialists in Human Resources Accounting since human capital entered in the field of accounting. While many companies (whether it is small or big) realize and confess that the most important assets that they have are the employees, but at the same time these companies did not know-how making the accounting over their human resources in their financial statements. The acceptance of the term (Human Capital) what it means, lead to the participation of the human resources managers in the operation of making decisions, especially in the companies that go beyond the appointment of many suitable employees. In order to face the challenges which are imposed by the rapid changes in the business world, managers are realized the importance of the management Human Resources and in the same time the success of the companies is no more depending on the tangible capital, but upon the abilities and skillfulness of the employees in these companies, who can accommodate easily with the technique developments and leading the companies towards achieving their objectives. The position (job) of accounting over Human Resources is to provide information to enable the management department to make use of this information through the analysis of their decisions, especially regarding the employees. At the same time giving the investors the opportunities to understand and evaluate the complete perspective about the company or the organization accurately. Human Resources accounting concentrate basically on the accounting of the employee’s attraction costs, besides the special programs cost in order to enhance and promote their efficiencies. Both of the external and internal employees in the financial statements using the financial rate or proportion as principal instrument to take most of their decisions, because most of the financial proportions depend upon the financial position bill and the income statement, this study reached some important conclusions are the human resources as evidence and their presentation in the financial statements have extensive implications and effects on the appearance of the company's business results with more credibility in a way that clarifies the real financial situation of financial institutions at the end of the year in a very accurate and objective manner. Taking into consideration that the costs of human resources are distributed over periods of the utilization of their services, noting the profits that will appear in the income items. Failure to measure investment costs in human resources and display them in the financial statements will lead to the injustice of most articles related to the financial position and the accounting of profits and losses. Ultimately, it reflects vague results in the company's performance appraisal process.