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 accountantsand the specialists in human resources accounting since human capital entered in the field ofaccounting. while many companies (whether it is small or big) realize and confess that the mostimportant assets that they have are the employees, but at the same time these companies did not knowhowmaking the accounting over their human resources in their financial statements. the acceptance ofthe term (human capital) what it means, lead to the participation of the human resources managers in theoperation of making decisions, especially in the companies that go beyond the appointment of manysuitable employees. in order to face the challenges which are imposed by the rapid changes in thebusiness world, managers are realized the importance of the management human resources and in thesame time the success of the companies is no more depending on the tangible capital, but upon theabilities and skillfulness of the employees in these companies, who can accommodate easily with thetechnique 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 tomake 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 completeperspective about the company or the organization accurately. human resources accounting concentratebasically on the accounting of the employee’s attraction costs, besides the special programs cost in orderto enhance and promote their efficiencies. both of the external and internal employees in the financialstatements 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 incomestatement, this study reached some important conclusions are the human resources as evidence and theirpresentation in the financial statements have extensive implications and effects on the appearance of thecompany's business results with more credibility in a way that clarifies the real financial situation offinancial institutions at the end of the year in a very accurate and objective manner. taking intoconsideration that the costs of human resources are distributed over periods of the utilization of theirservices, noting the profits that will appear in the income items. failure to measure investment costs inhuman resources and display them in the financial statements will lead to the injustice of most articlesrelated to the financial position and the accounting of profits and losses. ultimately, it reflects vagueresults in the company's performance appraisal process.