Ramya Jain


Human Resource Accounting is the process of assigning, budgeting, and reporting the cost of human resources incurred in an organization. Conventionally, according to general accounting principles, only monetary and physical assets are accounted in the books of account and there has been a failure to value human resources of an organization. However there is a change in this concept, now any expense on human resources should be treated as a capital expenditure because such expenses yield benefits for a long time period and should be shown as an asset in the Balance Sheet. The paper aims to review the literature available on human resource accounting. The paper tries to evaluate the historical background that led to the emergence of the concept of HRA. It investigates the various models both monetary and non-monetary that have been developed for the valuation of human resources.


Human Resource, Accounting, Valuation, Human Asset, Earnings.

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