Impact of Accounting Measurement and Disclosure of Human Resources on Financial Statements: An Empirical Study

In recent years, there has been an argument about whether or not human resources costs should be reported in the balance sheets or in the income statements as costs. This research aims at studying accounting measurement and disclosure of human resources and their impact on an organization’s financial statements, which are considered the main source of decision-making. The researchers adopted the analytical descriptive approach, utilizing an empirical study. A questionnaire was constructed and distributed to a population of Lebanese Certified Public Accountants and professors at public and private universities. The research yielded some important findings, mainly that investment in human resources can be considered as an asset of the organization, just like other intangible assets. The researchers also found that accounting disclosure of human resource costs actually affects financial statements.