A Study of Human Resource Accounting

Abstract

Human Resource Accounting (HRA) is a new branch of accounting. It follows the traditional concept that all expenditure on human capital formation is taken as a charge against the revenue of the period as it does not create any physical assets modern view is that cost incurred on any assets as Human Resources need to be capitalized as it provides benefits measurable in monetary terms. Measurement of cost and value of the people to organized as is highly important cost incurred in recruitment, selection, hiring, training and development of employees the concept of HRA has been defined by the American Accounting Association has “The process of identifying and measuring data about Human Resource and communication this information to interested parties. The study of this paper shows meaning, objective, importance and different method of Human Resource Accounting.