Appraisal of Human Resource Accounting Practices in Selected Public and Private Sector Companies in India
Keywords:Human resource, Human resource accounting, Educational institutions, Investment, Intellectual resources, Historical cost, Replacement cost, Opportunity cost
Human Resource Accounting (HRA) is a new branch of accounting. It follows the traditional concept that all expenditure on human capital formation is taken as a charge against the revenue of the period as it does not create any physical assets modern view is that cost incurred on any assets as Human Resources need to be capitalized as it provides benefits measurable in monetary terms. Measurement of cost and value of the people to organize as is highly important cost incurred in recruitment, selection, hiring, training and development of employees the concept of HRA has been defined by the American Accounting Association has “The process of identifying and measuring data about Human Resource and communication this information to interested parties. The study of this paper shows meaning, objective, importance and different method of Human Resource Accounting. The main concept behind Human Resources Accounting is the investment made on each employee and the value generated by them. In this context, it is immense difficult to account the resources of institutions in which profits and productivity heavily depends on intangible assets. This attempt becomes much difficult in the case of knowledge carriers and intellectuals. Intellectual capital has become an accounting component since a decade. Here is an attempt to quantify the investment made in intellectual and knowledge resources and obtain their future value. This paper aims at studying the concept behind quantifying and accounting for Human Assets in academic institution that help in the development of the institution and society. Introduction of Human Resource Accounting will increase the efficiency of the teachers and goodwill of the institution.
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Copyright (c) 2021 Yashwani Gaur, Shruti Singh, Nisha Poonia
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