Accounting for the Human Capital-the Most Significant but Deprived Area

As per the economic principles there are three basic factors of production namely land, labor and capital. Under the present accounting framework both land and capital is appropriately accounted for, however labor has been deprived of the appropriate accounting treatment which it qualifies for. Though there have been some attempts to prescribe the accounting of the human resource starting with the path breaking work of Flamholtz and Pyle and followed by many but none were successful in suggesting a solid conceptual framework in dealing with the issue. This paper is an honest attempt to fill the gap in an age where the role of Human capital and Intellectual capital is growing day by day.