International Journal of Science and Research (IJSR) ISSN: 2319-7064 Index Copernicus Value (2016): 79.57 | Impact Factor (2017): 7.296 Volume 7 Issue 12, December 2018 www.ijsr.net Licensed Under Creative Commons Attribution CC BY Human Resource Development and Competence on Employee Performance through Application of Human Resource Accounting at PT. SBM Agussalim 1 , Kartini 2 , Asri Usman 3 1, 2, 3 Hasanuddin University, Department of Accounting, Jalan Perintis Kemerdekaan km.10, Tamalanrea, Makassar, Indonesia Abstract: HR is one of the resources that cannot be released from the management of a business. This study aims to analyze the influence of (1) human resource (HR) development on the application of human resource accounting (HRA); (2) HR competencies on the application of HRA; (3) HR development on employee performance; (4) HR competencies on employee performance; (5) the application of HRA on employee performance; (6) the HR development through the application of HRA has an effect on employee performance; (7) HR competencies through the application of HRA has an influence on effect performance. To achieve these objectives, the method of data collection was done through observation, questionnaires, and interviews. Analysis of the data used were validity and reliability test, descriptive analysis, analysis of the measurement model (outer model), analysis of the structure model (inner model), and hypothesis testing. The results of the analysis show that the HR development has had a positive and significant influence on the application of HRA. HR competence has had a positive and significant influence on the application of HRA. The HR development has a positive and significant influence on employee performance. HR competence can improve employee performance and have a significant influence on employee performance. The application of HRA has a positive and significant influence on employee performance. The mediation test results that show that the application of HRA has not been able to mediate the influence of HR development on the performance of employees, but the development of human resources can only influence employee performance. The test results mediate the influence of competencies with employee performance through the application of HRA. Wherein the mediation test in this study shows that the application of HRA cannot mediate the influence of competency on employee performance. Keywords: HR development, HR competence, application of HRA and employee performance 1. Introduction Companies in the operation of their business needed innovative thoughts, intellectual capital, creativity, skills, integrity, and continuous improvement in all aspects to support their success. HR is an important asset that must be owned and considered by management. Humans for a company were often expressed as assets that were very valuable or often termed as human assets (HA) / human capital (HC) (Priyati & Fakhruddin, 2014). Cherian & Farouq (2013), stated that HR was one of the biggest assets of an organization. HA/HC influences organizational value (Theeke & Mitchell, 2008). Resource-Based Theory stated that companies that excel in business competition and improve good performance by possessing, mastering, and utilizing strategic assets including tangible assets and intangible assets (Wernerfelt, 1984, in Alafi & Suranta, 2018). Mulyono in Alafi & Suranta (2018), argued that the core of RBT was a competitive advantage. If superior resources, especially human resources could be managed by the company appropriately, then the company would be able to realize competitive advantage and eventually would lead to good performance. Human resources as workers or employees who worked for companies in the context of their operations. The company actually did not own or control such human resources, such as physical ownership of other assets, but ownership of operational rights to obtain benefits or benefits from human resources by using their services in the company's operations (Ningsih, 2001). A number of funds and materials were issued by the organization to recruit, choose, accept, train and develop its human resources, and human investment for the organization. The development of the business environment and increasing interest in humans as capital, had an impact on the need for human resource assets (HRA), including growing in Indonesia. This case was needed primarily by companies that place their HR as an important part of earning profits. Accounting development had progressed quite rapidly. The idea of human resource accounting (HRA) began with a view on the role of human resources that supports the survival of the company and the importance of human capital to the economy. This was driven by the increasing awareness of the most valuable assets in the company namely HR, especially intellectual capital. Estimates of cash, tangible fixed assets and other intangible assets were under human control. Without humans, the company's resources would not be able to generate profits or increase its own value (Suwatno & Priansa, 2011). Human who managed a company and created the added value. Without humans, assets owned by companies were passive assets that could not do anything without human policy intervention (Harahap, 2011). Conventional accounting had not revealed recognition and measurement of HR as company assets. The purpose of presenting HR was to identify changes in the value of HR so that HR could be known in the company experiencing an increase or decrease in value in a certain period. Conventional accounting treats expenditure for HR, only as an expense, without separating it into components of assets or costs. An important criterion for determining whether a cost was an asset or expense was closely related to the potential or value of the benefits provided in the future. Paper ID: ART20193607 10.21275/ART20193607 647