HUMAN ASSET ACCOUNTING AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANK IN NIGERIA

Abstract

The study investigated the impact of Human Asset Accounting on the financial performance of deposit money bank, 2018-2023. Its specific objectives were to determine the correlation between the cost of remuneration (salaries, premiums, etc.) and the net benefit and to evaluate the correlation between the cost of remuneration (salaries, premiums, etc.) and the return on the bank's activities deposit money bank. The explanatory and correlative design was adopted for the study, while secondary data were used for the study. Relevant data was obtained from the reports and annual accounts of the banks available on their websites and from the Nigerian Stock Exchange (several years). The correlation analysis of the Spearman range was used for data analysis and hypothesis testing. The result of the study showed that the accounting of human resources in terms of remuneration costs has a significant correlation with the net profit and return of the activities of deposit money bank. It implies that when banks dedicate resources to select and compensate employees who bring their assets to the bank, profitability increases and better overall bank performance can be achieved, especially in terms of managing total assets towards better performance. The study recommended that, among other accounting standards management bodies, they review the current accounting practices related to the cost of human resources and provide standards for the assessment and notification of these expenses in the budget to improve the content of the information in that status and the value of the bank. At the same time, the entity in charge of defining the IFRS standards must develop accounting principles for the evaluation and dissemination of human activities in financial reports. Furthermore, banks must absorb the practice of capitalizing and communicating investments in human resources or activities that can improve quality and productivity, as this will lead to an improvement in financial performance.