A survey into human resources accounting disclosure in the published annual accounts and reports: the case of companies quoted at the Nairobi Stock Exchange

Abstract

This study aimed at determining the current practice of human resources information disclosure in Kenya. To achieve this, the researcher set out to determine the human resources information items disclosed in the annual reports and accounts of Kenyan companies, the trend of this disclosure in the period 1994 to 1998, whether the disclosure differs significantly between the sectors of various companies, and finally whether this disclosure differs depending on the accounting firm auditing the company's accounts. A sample of 49 companies listed in the Nairobi stock Exchange was selected and their annual reports and accounts analysed with a view of achieving the above objectives. The information was presented in the form of tables, percentages and graphs in order to show the human resources items disclosed and the trend of the disclosure. To determine whether there exists a relationship between the human resources information items disclosed and the sector of the company as well as between the human resources information items disclosed and the company's auditors, chi-square tests were conducted . The study concluded that companies in Kenya practice human resources accounting which is however limited to human resources information disclosure in the Chairman's report. The most disclosed item was appreciation for employees' contribution in the organisation. The study also established that a relationship exists between the human resources information items disclosed and the company's sector as well as between the human resources items disclosed and the accounting firm auditing the company's accounts. The findings should however be analysed while taking account of the limitations stated in chapter five.