A Critical Review on the Process and Reasons of Human Resource Accounting Development

Nowadays, accounting has special position and plays an important role in economic, trade and manufacturing currents. If can define accounting as "The process of identifying, measuring, classifying and reporting of financial information in order to create an opportunity for international and logical decision for users of financial information.(American Accounting Association Committee 1973)", can seek part of this importance from the definition mentioned above. providing information in order to create a basis for logical decision making is an important issue covering all aspects of activities of the companies.

Human Resource Accounting (HRA) has attracted a considerable amount of interest in a comparatively short period of time. Although many works on behavioral and organizational aspects of accounting have been conducted, but research, writings, enthusiasms as well as criticisms and disappointments have greatly flourished in HRA area. Business enterprises often proclaim that their labor force (human resources) is their most important asset, while at the same time they fail to recognize it in managerial planning, decision-making and in published annual reports. HRA attempts, in most cases, have been directed to an internal, management control perspective. However, this paper review process and reasons of accounting development with perspective of human resource.