Human Resource Accounting Practices and Indian Industries
Posted: 18 Nov 2009 Last revised: 3 Mar 2010
Date Written: November 18, 2009
Human Resource Accounting (HRA) means accounting for people as original resources. It is the measurement of cost and value of people for an organization. It is also a way of thinking about the management of people in formal organization. Knowledge workers are important resources for the typical modern business firm. With the growing complexities of business organization, the need and importance of competent people is increasing continuously. Yet financial reporting ignores such resources.
This paper throws light on the concepts of human resource accounting. It includes an introduction to the concept of human resource accounting, various human resource accounting models, which have been adopted by number of Indian enterprises to give information for human resource in their balance sheets, steps involved in calculation of human value using Lev and Schwartz model and its critical aspects and last, concluded by giving suggestions for the improvement in this field.
Keywords: Human Resource, Accounting for Human Resources, Models for Human Resource Accounting
JEL Classification: M41, G12, J24, M12
Suggested Citation: Suggested Citation