Analysis Of Human Capital Theory And Accounting Issues Involved In The Distribution Of Income

On the analysis and review of both the development of Human Resource Accounting (HRA) theories and the research status and trend currently, this paper focuses on the theoretical foundation, distribution methods, system arrangement, implement approaches as well as the relative theories and operations in accounting of in the participating in residual distribution of enterprises by human resources. The main purpose of this paper is to probe into the issue of human resource's sharing in the residual proceeds of enterprises, and to give suggestions on improving the related accounting principles and practice.In the first place, this paper summarizes the state of study on Human Resource Accounting theories and gets an overall review, then it analyzes the status quo, difficulties and theoretical guide of the development in HRA in China. After an investigation of the current situation of the distribution and information announcing by public listed companies in China, the author endeavors to launch a calculation & reflection system frame in the distribution of earnings by human resources.The main conclusions and viewpoints of this paper are as follows:1) After the human capital is put into enterprises, it should also participate in the sharing of enterprises ' surplus earnings like material capital. How to assign the standard and proportion between them depends on the balanced result of match by the two parties.2) The issue of Human Capital participation in the distribution of surplus earnings is the feasibility practice of HRA. Meanwhile, the paper attempts to help the settlement of the value reflection and calculation of Human Capital in enterprises and the assignment of earnings contribution in terms of participating in distribution of income.3) There are different characteristics and structure in the sharing of enterprise earnings by Human Capital in different levels and types. The stimulation of long-term and recessive way, such as stock option, is the ideal way of participation in the surplus by the high-level Human Capital.4) By comparison of the earning ratio in enterprise and industry, the paper illuminates the balanced distribution standards between the human capital holder and the material capital owner. This article also puts forward some concrete practical methods of the participation in residual earnings by Human Capital.5) Through investigating the accounting practice and information disclosure situation on the participation in residual earnings announced by the public listed company, the paper points out that it illustrates a disunity and deficient feature in the disclosure of the residual income distribution, because it lacks the relative system and standards. By incorporation of the accounting equality about the information of the human resources and human capital, the rights and interests theory of traditional accounting is revised. The author also propose to adopt the thought of "the human capital's equity quotient" to deal with the accounting practice and report.