Human Resource Accounting (HRA) – Meaning and Relevance

This paper attempts to highlight the need of accounting for human resource and depict the same in the financial statements of an organization. The distorted narratives on human resource accounting have led to the serious issue of measuring the value of human resource and recognizing the value of human resource in the balance sheet of an organization. The paper also highlights the growth and development made in the domain of human resource accounting during the last five decades and accentuates the importance of measuring the value of human resource highlighting the various benefits of HRA. This paper is an attempt to explore the horizons of accounting for human resource which has been streamlined over the past many decades due to the cryptic nature of human resource accounting.