Patience Umah

Department of Accounting, Faculty of Business Studies

Ignatius Ajuru University of Education, Rivers State, Nigeria



The study investigated the impact of Human Asset Accounting on Financial performance of Food, Beverage and Tobacco firms in Rivers State, 2012 -2016.  Its specific objectives were to ascertain the correlation between remuneration (salaries, allowances etc.) cost and  Net Profit and to evaluate the correlation between remuneration (salaries, allowances etc.) cost and  Return on Asset of food, beverages & Tobacco manufacturing  firms in Rivers State. Explanatory and correlational design were adopted for the study while secondary data was utilized for the study. The relevant data were collected from the annual reports and accounts of the companies available on their websites and from Nigerian Stock Exchange for various years. The data collected was from the period 2012 – 2017. Spearman’s Rank Correlation analysis was used for data analysis and testing of the hypothesis. The result of the study showed that human asset accounting in terms of remuneration costs has a significant correlation with net profit and return on asset of Food, Beverage and Tobacco firms in Rivers State. It implies that where firms dedicate resources towards selecting and compensating employees that bring their assets into the firm, profitability will increase as well as overall better performance of the firms could be achieved especially in terms of managing the total assets towards enhanced  performance. the study recommended that amongst other accounting standard setting bodies should review present accounting practice relating to human resources cost and provides standards for valuation and reporting such expenditures in financial statement to enhance information contents of such statement and firm value. At the same time, the IFRS standard setting body should develop accounting standard for valuation and disclosure of human asset in the financial reports. Furthermore, manufacturing firms should imbibe the practice of capitalizing and reporting investment on human resources or asset that can improve the quality and productivity, as this will lead to enhance their financial performance. 


Keywords: Financial Performance; Food, Beverage and Tobacco Manufacturing Sub Sector; Human Asset Accounting; Net Profit, Return on Asset, Nigeria; Remuneration costs.



Assets are believed to be one of the key tools to organizational survival and where there are varieties of assets at the disposal of an organization, then its survival and worth can be said to be guaranteed. One of the key assets that perhaps help in controlling and maintaining all other assets of the organization is the human asset. This is so important that organization overall performance both financial and non financial can be said to suffer if they assets are not adequately protected and guarded. This is because, as argued by Olaniyan &  Lucas (2008), human resources play crucial roles coordinating all other organizational activities that help to achieve organizational goals and objectives. Further, it is believed that with tangible assets such as machines, material and>>>Read more

No Images


No Images