Human Resource Accounting-A Case Study with Special Reference to Visakhapatnam Port Trust

Human Resource Accounting (HRA) is a Voluntary Disclosure, which involves accounting for the organization's workforce or employees. Many theories and techniques have been developed by eminent researchers on human resource valuation. HRA as a concept gained popularity in many developed countries, which have considered the significance of Human Resources in their organizations development. In India, HRA is slowly being attracted by MNC's in order to understand and also motivate the employees for their effective contribution. The present study is an attempt to analyze the importance of Human Resource Accounting in the organization's performance and in their decision making process. The authors have taken up a case study in evaluating the HRA process by selecting Visakhapatnam Port Trust. The study was carried out by taking into consideration the administrative data for duration of 4 years period i.e. from 2008–09 to 2011–12 of VPT by adapting Lev & Schwartz Model to value VPT'S human resources. The outcome of the study states that VPT had been giving absolute importance to its employees & all its stakeholders through its initiatives. The study also throws light on the quantitative information about the value of human asset calculated from the HR information that is provided in their financial statements. This value of human assets would be of great help to the management of VPT in taking effective managerial decisions.