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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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PRINCIPLES OF ACCOUNTING

 Accounting consist of  Principles, Concepts, Conventions, rules and guidelines developed over a period of time to bring uniformity and consistency to the process of accounting in order to enhance its utility to various users of accounting information. 

These principles are based on past experiences, usage or custom, statements by individuals and professionals bodies, and regulations by government agencies. 



These principles are not static in nature and are influenced by changes in legal , social,and economic environment. 


Accounting principles 


1. Business Entity  Principle

This Principle assume that  business has a separate and distinct entity from it owners,creditors, managers and others. It means we have to record business transactions from firm's point of view and not from the point of view of the owners. 

Because of the principle of separate entity  the owner's house,his personal investment in securities, personal expenses are kept separate from the account of business entity. 


2. Money  Measurement  Principle


According to the Principle ,only those transactions and events are recorded in accounting which are measured in terms of money. 

For example Accounting does not record a quarrel between workers, managers, it does not reveals that a competitor has placed  a better product in the market.

As such making accounting records relevant  simple, understandable and homogeneous, they are expressed in term of money. 


3. Principle of full disclosure 


This Principle states  that all material and relevant facts concerning financial performance of an enterprise must be fully and completely disclosed in financial statements. 

Various items or facts which don't find place in accounting statements are shown in balance sheet by way of footnotes. Such as 

1. Contingent Liabilities 

2. Market value of investment 

3. Change in the method of valuation 


4. Accounting Period Principle 


This Principle conveys the time period which is  usually adopted by the business owners to provide  information timely to their users. 

12 month period is usually adopted for this purpose. Accorded to the  income tax law, a business has compulsorily to adopt financial  year beginning on 1st April and ending on 31st March in the next calendar year. 

Apart from this ,companies whose shares are listed on stock exchange are required to publish quarterly results to depict the profitability. 


Principle of Materiality 


This Principle conveys that accounting should focus on conveying material information only. Items having an insignificant effect or being irrelevant to the user need not be disclosed. 

AMERICAN ACCOUNTING ASSOCIATION defines the term Materiality as

"An item should be regarded as material if there is a reason to believe that knowledge of it would influence decision of informed investor."


6. Principle of Conservatism


This convention requires that profit should not be recorded unless realised but all losses,even those which may have a remote possibility are to be provided for in the books of accounts. 

In other words, conservatism is the policy of playing safe.

Following are the examples of the application of the Principle  of Conservatism 

(1) closing stock is valued  at cost price or realisable value whichever is less.

(2) provision for doubtful debts is created  in anticipation of actual bad debts. 


7.  Cost Principle 

This principle conveys that all assets are recorded in books of accounts at their purchase price,which includes cost of acquisition, transportation, installation and making the assets ready for use. For example 

If a business entity purchase a building for Rs 50,00,000 ,it would recorded in the books at this figure. Any increase or decrease in the market value of the building would not  be recorded in books of accounts. 


8. Matching  Principle


This Principle states that the expenses incurred in an accounting period should be matched with the revenue of that period to ascertain the amount of profit earned and loss incurred. 


9. Dual Aspects Principle 


According to this Principle every transaction have two - fold effect and should therefore be recorded at two places. If one account is debited  other should be credited. It is because of this Principle that the two sides of the balance sheet are always equal. 

ASSET = LIABILITIES + CAPITAL 






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