8 Pages Posted: 26 Apr 2007 Last revised: 11 Dec 2013
Date Written: April 20, 2007
Human resource accounting (HRA) is an attempt to identify, quantify and report investment made in Human resources of an organization that are not presently accounted for under conventional accounting practice. Businesses which require a considerable creativity or are science-based show a significant difference between market value and net book value. This difference is for intangible assets (including human skills). However the Human Resources are yet to get recognition in Balance Sheet. Researches in this field have been slow and researchers are not able to develop a model which are free from major limitations. In this paper I have given a new method to value human resource. This method is specially relevant in knowledge companies.
Keywords: Models for Human Resource Accounting, Performance Improvement, Human Resource Management, Human Resources, Accounting for Human Resources, Modern Accounting Concepts
JEL Classification: M41, M44, G12, M12, J24
Suggested Citation: Suggested Citation