Knowledge that Transforms

Human resource accounting is concerned with the development of theory and methods of measuring the cost and value of people to formal organizations. Its ultimate objectives are (1) to develop a theory of the nature and determinants of the value of people to formal organizations and (2) to develop valid and reliable methods of measuring the cost and value of people to organizations. The need for measures of human resource cost and value has been discussed extensively during the past few years (Likert, 1961, 1967; Hermanson, 1964; Hekimian and Jones, 1967; Brummet, Flamholtz, and Pyle, 1968, 1969; Flamholtz, 1969, 1971a; and Lev and Schwartz, 1971). The need for a theory of human resource value has received less attention (Flamholtz, 1969, 1971a).

Accounting Principles Board, Oil and Gas, Equity valuation, Efficient market Hypothesis

Bankruptcy, Discriminant analysis, Financial ratios, Business failure

Accounting History, Algorist, Abacist, Bookkeeping

Accounting techniques, Stock price, Discretionary accounting decisions, Efficient market Hypothesis

Anthony G. Hopwood, [Discussion of An Empirical Study of the Role of Accounting Data in Performance Evaluation]: A Reply, Journal of Accounting Research, Vol. 10, Empirical Research in Accounting: Selected Studies 1972 (1972), pp. 189-193

J. W. Elliott, H. L. Uphoff, Predicting the Near Term Profit and Loss Statement with an Econometric Model: A Feasibility Study, Journal of Accounting Research, Vol. 10, No. 2 (Autumn, 1972), pp. 259-274

Accounting changes, Earnings smoothing, Interim reporting

Holmes' comment was addressed to Dr. Watson who had just expressed astonishment that Holmes was ignorant of the Copernican theory of the solar system. In truth, Holmes' reply to Watson expressed my exact sentiments after reading Ronen's review. Why? Because I found that I would have to answer the following question in the negative after almost every point he made: Would I do anything differently in view of what Ronen has stated?