Application of Human Resource Accounting using the Unpurchased Goodwill Method according to Hermanson's Proposal: A Case Study of Bakkar Electric Poles Company in El Oued

Abstract

The main objective of this study is to measure human resources from the perspective of human resource accounting within economic units in the Algerian context. To achieve the study's objectives and test the hypotheses, we adopted the descriptive-analytical method, relying on books and previous studies for the
theoretical part, and on some accounting statements of the Bakkar Electric Poles Company in El Oued (e.g.,the balance sheet, income statement, etc.) for the practical part. Human resource accounting was applied to the Bakkar Public Works Company in El Oued for the year 2021 through accounting treatment using
Hermanson's proposed unpurchased goodwill model based on the value standard, and the impact of this on the elements of the financial statements was demonstrated. The study concluded that the recognition and accounting measurement of human resources have a clear impact on the financial statements.