Human capital accounting

The traditional method of accounting explains how employees are a liability for the organisation due to the expenses that are incurred towards the employees beginning from training and development to other employee benefits incurred, through this paper we would differ from this traditional method. We would look at it from a different point of view according to which human resource is an asset since the existence of the organisation is based on the organisation's workforce. Through the subject of Econometrics we take into account the human efficiency and relate it to the productivity and try to give human efficiency a monetary value. The data used for the purpose of empirical study are secondary in nature. The main question that we are trying to answer is whether human resources satisfy the test to be classified as an asset.