Human Resource Accounting: an Emergingapproach to Measuring Human Capital Inorganizations

Author(s)	Ms. Rejitha A K Ak
Country	India
Abstract	Human Resource Accounting (HRA) is a systematic process of identifying, measuring,recording, and communicating information regarding investments made in human resources.In the modern business environment, human resources are recognized as one of the mostvaluable assets of an organization. However, traditional accounting systems treat expenditureson employees as expenses rather than investments. Human Resource Accounting seeks toovercome this limitation by assigning monetary values to employees and evaluating theircontribution to organizational performance. This paper examines the concept, objectives,importance, methods, applications, advantages, limitations, and future prospects of HumanResource Accounting. The study also discusses the implementation of HRA in India andhighlights the growing significance of human capital in the knowledge-based economy.
Keywords	Human Resource Accounting, Human Capital, Employee valuation, Organisational Performance
Field	Business Administration
Published In	Volume 8, Issue 5, September-October 2026
Published On	2026-09-04

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