Volume : III, Issue : V, May - 2013

Accounting for Human Resources – An Emerging Concept in Modern Corporate World

Dr Suresh Dhaka, Dr Adarsh Preet Mehta

Abstract :

Human resource is the most significant part of any organization, as it makes sure that there exist a symbiosis between financial and all other physical resources towards the attainment of organizational objectives and goals. Traditionally, financial assets are accounted in the books of accounts as per the double entry system, but do not include the human asset. Although a lot of efforts have been made by many researchers in this arena, a proper/appropriate and fully reliable method of performance based on accounting in the Indian context is not yet available. The past few decades have witnessed a global transition from manufacturing to service based economies. In order to estimate and project the worth of the human capital, it is necessary that some method of quantifying the worth of the knowledge, motivation, skill, and contribution of the human elements as well as that of organizational processes, like recruitment, selection, training, etc which are used to build and support these human aspects, is properly developed. HRA denotes this process of quantification and measurement of human Resources. The physical assets like land, building, plant and machinery are recorded in the books of accounts at their cost price. Now, depreciation on these assets is considered as the cost for the particular year and debited to profit and loss accounts and the remaining balance is shown in the balance sheet as written down value of the assets. Hence, on similar lines the human resources should also be evaluated, recorded in the books, operated and disclosed in the financial statements. The basic objective of the paper is to study the human resources accounting practices, to identifythe issues and challenges, to examine these issues and challenges and lastly, to give suggestions based on the findings.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr Suresh Dhaka, Dr Adarsh Preet Mehta Accounting for Human Resources‾An Emerging Concept in Modern Corporate World Indian Journal of Applied Research, Vol.III, Issue.V May 2013

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