SYNOPSIS

TOPIC: Human Resources Accounting

INTRODUCTION: Human Resource Accounting (HRA) means to measure the cost and Value
of the people (i.e., of employees and managers) in the organization. It measures the cost
incurred to recruit hire, train and develop employees and managers.

DEFINITION: Human Resource Accounting (HRA) is the process of identifying and reporting
investments made in the human resources of an organisation that are presently
unaccounted for in the conventional accounting practice.

NEED OF HRA: The need for HRA is, essential to prepare balance sheet of value of human
assets with capital assets so that the real worth of the firm get reflected in the balance
sheet of the firm and then the valid comparison between the two firms can be easily made.

SCOPE OF HRA: Helps management in employment and utilization of human resources in a

cost-effective manner; Helps management in deciding promotion, demotion, transfers,
retrenchment, and VRS schemes. Provide a basis for planning about human resources. Helps
in identifying key employees and their cost and benefits.

OBJECTIVE:
1) To understand the meaning of Human Resource Accounting
2) To discuss various methods of human resource accounting
3) To know the present status of HRA
4) to identify the issues and challenges in HRA
RESEARCH METHODOLOGY:
TYPES OF DATA:
(1) PRIMARY DATA
(a) Interviews
(b) Questionnaire (Online)
(c) Data collection, Analysis

(2) SECONDARY DATA

(a) Data from social media
(b) Various journal
(c) Books
(d) Websites