*Department of Management, Birla Institute of Technology, Mesra, Ranchi
**Department of Management, Kejriwal Institute of Management and Development Studies, Ranchi
***Department of Management, Birla Institute of Technology, Extension Centre Lalpur, Ranchi
Online published on 10 January, 2012.
The success of every firm depends upon the caliber, honesty, quality and character of employees working over there. Success or failure of any organization is depended upon the skill and performance of the employees.
The concept of human resource accounting reflects the potential of the human resources of an organization in monetary terms, in its financial statements. Companies like BHEL, Infosys, and Reliance Industries have implemented human resource accounting. Infosys started showing human resource as an asset in its balance sheet which has been reaping high market valuation. NIIT followed a similar method called Economic Value Addition (EVA) which helps in assessing the real value that an employee can fetch for the company.
Human Resource Accounting involves accounting for expenditures related to human resources as assets as opposed to traditional accounting which treats these costs as expenses that reduce profit.
This paper tries to explore the various aspects of Human Resource Accounting.
