Professional Documents
Culture Documents
Our assets walk out the door each evening. We have to make sure they come back the next morning. N.R.Narayana Murthy
In the past. . .
HR professionals have been getting by focusing on the day-to-day. They need to develop a broader and fartherreaching vision and understand where their organization is headed and how they can help steer the company in that direction.
To be a globally respected corporation that provides best breed of software solution delivered by best-in-class people.
Provide qualitative information on HR which will help managers and investors in making decisions. Evaluate RoI on HR.
Historical-cost approach
Also called Acquisition Cost approach. Cost of acquiring an employee ( recruitment, hiring, induction ) are taken into account. These historic costs are capitalized. Capitalized costs are written off over a period of time the employee remains in the organization. On premature separation the unamortized cost is written of against Profit/Loss of that year. Note: Not useful for managerial decision making. Benefits to organization is not known.
Replacement Cost
Measures the cost of replacing the employee rather than the historical cost of an employee. Most appropriate in the context of dismissal and replacement staff. Include: recruitment, selection, compensation, and training costs May lead to upwardly biased estimates because an inefficient firm may incur greater costs. How often do companys make decisions regarding dismissing & replacing staff?
Can be measured by its cost or by the wages the organization will pay the employee
Measure is limited because it assigns value to the average rather than to a specific group or individual.
Endless Search
The search continues for a single, limitedcriterion measure for HRA but it is unrealistic to expect that such a measure will be developed. We judge the value of athletes by measuring how much a particular team is willing to pay him.
Measurement of intellectual capital can help managers and investors by providing a more accurate estimate of the true value of the company than would a single accounting of its physical holdings.
Advantages of HRA
Provides quantitative information on value of human capital. Helps management to judge adequacy of human resources. Helps to judge return on investment in HR. Promotes intellectual and social growth of individual and economic goals of the organization. Facilitates planning and control in key areas like labour turnover, productivity & performance evaluation.
BOOKS OF ACCOUNT
Statutory Records
Accounting records should be prepared in such a manner and design so as to enable the entity to ascertain and know: Liabilities had and amount owned to parties Assets owned and their value Cost of goods sold Sales made, revenue earned and gains made Expenditure incurred and losses suffered
Vouchers are the basic documentary evidence for BoA. They are of different forms: Cash voucher( receipt and payment) Bank voucher( receipt and payment) Journal vouchers( non cash/bank transactions) Cash memos Invoice Goods received note(GRN) Receipts for Salary/Salary sheet Bills for Telephone, Electricity and Water
Sec 210: At every AGM the Board shall lay before the company: (a) A balance sheet & (b) Profit & Loss account for that period. In case of business carried on not for profit an Income & Expenditure account. Minimum accounting period is 9 months and maximum period is 18 months.
Preservation of BoA
The BoA shall be maintained for a period of eight years from the year of which the account relates. Following BoA are generally maintained : Cash book, Bank book Journal, General Ledger Purchase register, Sales register Creditors ledger, Debtors ledger Sales return and Purchase return register Cost accounting records