Hidden costs, accounting treatments, and budgeting
FREE03 – People Professionals and Finance
This CIPD Level 0 video from the FREE03 People Professionals and Finance unit explores hidden costs, accounting treatments, and budgeting as covered in assessment criteria AC 1.3. The content examines how people costs appear in financial reporting, including headcount and FTE calculations, payroll, National Insurance, pensions, overtime, benefits, bonus schemes, training and development, recruitment costs, contingent labour, absence costs, and provisions such as redundancy through accruals and budgets. By watching this video, learners will understand the full scope of people-related financial commitments and how these costs are reflected in organisational financial statements, enabling them to make more informed decisions about HR budgeting and cost management.
Assessment Criteria 1.3
Discuss how people costs appear in financial reporting.
Indicative Content
To include: headcount and FTE; payroll, NI, pensions; overtime; benefits; bonus schemes; training and development; recruitment costs; contingent labour; absence costs; provisions (e.g., redundancy); accruals and budgets.
What You'll Learn
Video covering: Hidden costs, accounting treatments, and budgeting
About FREE03 – People Professionals and Finance
To develop learners’ understanding of essential finance concepts in business and how people professionals use financial insight to support workforce decisions, budgets and organisational performance.
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