How to Value Human Resources

8 Pages Posted: 26 Apr 2007 Last revised: 11 Dec 2013

See all articles by Dr. Amitabh Deo Kodwani

Dr. Amitabh Deo Kodwani

Indian Institute of Management (IIM) rohtak; Institute of Management Technology, Ghaziabad

Ravindra Tiwari


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

Kodwani, Amitabh Deo and Tiwari, Ravindra, How to Value Human Resources (April 20, 2007). Available at SSRN: or

Amitabh Deo Kodwani

Indian Institute of Management (IIM) rohtak ( email )

Maharshi Dayanand University
Delhi Rd
Rohtak, Haryana 124001


Institute of Management Technology, Ghaziabad ( email )

Raj Nagar
Hapur Road
Ghaziabad, Uttar Pradesh 201001
+918295566118 (Phone)


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