Human Resource Accounting: Its Constraints and Limitations in the Philippines

This study is a sequel to the article previously written on awareness of Human Resource Accounting Practices and Costing (HRAC) of companies located in the Philippines. This study aims to find out if the recommended accounting system is acceptable by companies and its constraints and limitations in adapting HRA in the Philippines. The respondents were, 15 accountants, 13 human resource managers, 4 managers, 4 owners. 2 presidents, 1 finance officer, and 1 controller, representing forty (40) companies in Metro Manila. The researchers used a questionnaire to collect the data. The results showed that companies were not interested in adapting any accounting system for human resource. This is mostly due to the lack of information available about HRA, the constraints in valuating human resource due to lack of universal acceptable human valuation, no clear guidelines, no industry standards and no law recognizing humans as assets. Limitations include morale problems in considering employees as assets, which may dehumanize them, and the methods of amortizing human assets. In conclusion, HRA needs international regulations, more time, planning and training before it can be used in the Philippines.