HUMAN

RESOURCES
ACCOUNTING
Name : Swapnil Thorave

Class: Mcom part 1 Div: A

Subject: Financial
Accounting and control

Roll No. : 12
 CONTENTS
 INTRODUCTION
 DEFINATION
 BASIC PRIMISES

 NEED
 OBJECTIVE
 ADVANTAGE

 LIMITATION
 COST OF HUMAN RESOURCES
 HRA PRACTICING COMPANIES IN INDIA
 INTRODUCTION
• Human resource accounting is the process of
identifying and reporting investments made in the
human resources of an organization that are
presently unaccounted for in the conventional
accounting practices.

• It is an extension of standard accounting principles

• Measuring the value of the human resources can

assist organizations in accurately documenting their
assets.
 DEFINATION OF HRA

"Human resources accounting is an attend to

identified and report investment made in human
resources of an organisation.Basically it is an
information system that tell the management what
changes over time of occuring ti human resources of
the business."
BASIC
PRIMISES

• People are valuable

resources of an
organisation
• Usefull of manpoweris
the determined by the
way it is managed
• Information on
investment and value of
human resources is
useful to decision
making
 NEED
• Formulating policies and programmes for the
development of human resources.

• Decisions regarding cost reduction programmes.

• Training and development.

• Recruitment and selection.

• Manpower planning and control.

• Conservation and reward of human resources.

 OBJECTIVE

• To furnish cost value information for making proper

and effective management decisions about
acquiring, allocating, developing, and maintaining
human resources in order to achieve cost effective
organizational objectives.

• To monitor effectively the use of human resources

by the management.

• To have an analysis of the Human Asset, i.e.

whether such assets are conserved, depleted, or
appreciated.
 ADVANTAGS
• Information for manpower planning.

• Information for making personal policies.

• Utilization of human resources.

• Proper placement

• Increase moral and motivation

 LIMITATIONS

• There are no clear cut and specific procedures or

guidelines for finding costs and value of human
resources of an organization.
• The period of existence of human resources is
uncertain and hence valuing them under
uncertainty in the future seems to be unrealistic.
• In spite of all its significance and necessity, tax laws
don't recognize human beings as assets.
• There is no universally accepted method of the
valuation of human resources.
 COST OF HUMAN
RESOURCES
• Acquisition cost.

• Training and development cost.

• Welfare cost .

• Other cost.
HRA PRACTISHING COMPANIES IN
INDIA
• Bharat heavy electrical ltd
• Steel authority of india ltd
• Oil and natural gas commissioning
• Oil india ltd
• Enginners ltd
• Electrical india ltd
• Hindustan shipyard ltd
• Cement corporation of india ltd
• Infosys technologies ltd
 CONCLUSION

• Human resource accounting is not new concept in

the corporate world. This concept is about the
evaluation of the human resources as assets into
the companies.
• However, in India so far HRA has not been
introduced as a system so to be applied among the
companies with proper mechanism.
• In Indian companies, expenditures of the human
resources are treated as current expenditure but
some expenditure is deals as capital nature
THANK
YOU