Human resource accounting and it's status in India

Human resources were always considered as liabilities; but in the evolving scenario, organizations have started recognizing them as assets. For valuation of human resources, Human Resource Accounting is being used by a few organizations. This concept is still in a developmental stage. We know that every coin has two sides; similarly, Human Resource Accounting has its own advantages and disadvantages. If human resources are valued correctly then organization can use this data as a tool for future decision making in matters related to human resources which is directly connected to the profitability of organization. As this concept is still in a nascent state, there is no formal method as yet which is universally accepted. This article focuses on the development of the concept, definition, importance and limitation of Human Resource Accounting.