ANALYSIS OF THE HUMAN RESOURCE ACCOUNTING METHODS FOLLOWED BY INDIAN FIRMS

Human resources are considered as essential assets and are different from the physical assets. Physi¬cal assets do not have feelings and emotions, whereas human assets are prone to various types of feelings and emotions. In the same way, human assets never gets depreciated like the physical assets.Therefore, the valuations of human resources along with other assets is required in order to find out the total cost of an organization. The American Association of Accountants (AAA) defines HRA as follows “HRA is a process of identifying and measuring data about human resources and communicating this information to interested parties”. The need for human asset valuation arose because of growing concern for human relations manage¬ment in the industry. Hence we chose this topic to show how the firms that follow HRA are better off and help not only themselves and the industry but also the nation as a whole, grow. Being the land with second largest population, HRA solves the issue of unemployment, poverty and standard of living of people. HRA can be done with several methodologies and so the result of this paper highlights which among the many is the best suited and has a wider perspective.