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The study reports the findings of an empirical evaluation of the tenability of the existing Accounting for Human Capital tools amongst the Kenyan Chief Finance Officers (CFOs) in medium and large organizations. Explanatory-mixed method cross-sectional survey on CFOs in Kenya. The overall finding is that the tools are not well understood by CFOs in Kenya, 64% of whom are from the Knowledge-Information-Service-Sector (KISS). Specific outcomes are fourfold. First, the tools are disparate and devoid of focused formulas. Second, most of the tools focus on determining individual employee cost rather than Total Human Capital Cost (THCC), and Kenyan CFOs support the notion of THCC, and opine that the tools are cost-effective measurement-communication systems. Third, the accounting practice is operationalized by legal stipulations such as the IFRS(s) used in Kenya since 1998. Finally, the tools require requisite HC accounting metrics. In sum, the HRA theory is validated as an Accounting for HC discipline for improved decisions in Kenya. However, Kenyan firms, and especially KISS firms of the contemporary world do not compare favorably with their counterparts in the developed world in Accounting for HC as the practice is not adopted, and are unlikely to benefit from its positive impact on firm performance and quality of decisions. Accounting for Human capital is a big deal in Kenyan KISS firms, yet unexplored in existing empirical works.
Parent: Digital Repository
|Tags||kiss, firms, which, embrace, accounting, for, human, capital, have, emerged, in, kenya|