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HUMAN RESOURCE MANAGEMENT, OBJECTIVE AND SCOPEOF HRM

  Human resource management is concerned with the "people" dimension in the management. Human resource management means the management of people within an organization . Since,every organization is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance and  ensuring that they continue to maintain their commitment to the organization are essential to achieve organizational objectives. Those organization that are able to acquire ,develop ,stimulate and keep outstanding workers will be both effective and efficient.  Those organizations that are ineffective or inefficient risk the hazards of stagnating or going out of business. Human resource does creates organization and makes them survive and prosper.  If human resources are neglected or mismanaged, the organization is unlikely to do well. "Human resource management is the field of management which has to do with planning organizing and controlling the func...
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ACCOUNTING CONCEPTS

 Accounting concepts provide a foundation for accounting process. When a business enterprise prepare financial statements ,it is based on some set rules known as policies, principles and conventions. These rules brings uniformity and consistency to the process  of accounting and enhance its utility to different users of accounting information. 

No enterprise can prepare its financial statements without considering these basic concepts and assumptions. These concepts guide how transactions should be recorded and reported. 




THERE ARE THREE ACCOUNTING CONCEPTS 


1. Going  Concern Concept


In this concept, we assumed that business will continue to exist for a long period in future. 

For example  when outside parties enter into long term contracts with the enterprise, gives loans and purchase the debentures and share of enterprise, it is because of going concern concept. 

According to going concern concept transactions are recorded in the books of business, on the assumption that it is a continuing enterprise. It is on this concept that we record fixed assets at their original cost and depreciation is charged on these assets without reference to their market value. 


2. Consistency Concept 


This concept conveys that accounting principles and methods should remain consistent from one year to another. It should not be changed from year to year. If a firm adopts different accounting principles in two accounting periods, the profit of current period will not be comparable with the profit of preceding periods. 

For example  a firm can choose any one of the 

Several methods of depreciation I.e. , straight line method,written down value method or any other method. It is necessary that if the method once chosen will be followed consistently year after year.

But the consistency concept should not be taken to mean that it doesn't allow a firm to change the accounting methods according to the changed circumstances of the business. 

Otherwise, the accounting will become non - flexible and the improved techniques will not be used. 

As such if accountant feels that change is necessary for the better results then changed methods may be adopted and it must be stated clearly by way of footnotes ,which helps to the user of financial statements .


3. Accruals  Concept 


There are two basis used for recording transactions. 

Cash basis

Accruals basis 

In accounting, accrual basis is used for recording a transaction . It provides more appropriate information about the performance of business enterprise as compared to cash basis. In accrual concept revenue is recorded when sales are made, service are rendered and it is immaterial whether cash is received or not.

Thus ,to ascertain the true financial position of an enterprise, all expenses and incomes relating to the accounting period are recorded whether cash has been paid or received or not. 


Thank you 





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