Application of Lev and Schwartz Compensation Model on the Accounting Practices of MCF Limited

In this competitive world, the efficiency of the labour force determines the competency of the organi stations , which indicates that human beings are the greatest asset for any firm. This paper attempts to examine the applicability of human resource accounting and to measure the HRV of one of the largest chemical manufacturing company of India. The study conducted for a period of three years beginning from 2013 to 2015 . Lev and Schwartz compensation model was used to calculate the worth of the workforce at a specified discount rate corresponding to the company . Employee’s age, remuneration, education, experience, job performance, cost of living, financial condition and the promotion policy of the firm, are the factors which affect the calculation of employee’s worth. The result of the study indicates that employee demographics and human resource values are significantly correlated. The research also advocates the need for an efficient model which could facilitate measuring the intellectual capital at its true potential.