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A Study on Human Resource Accounting Practices in India

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A Study on Human Resource Accounting Practices in India


Monika Kataria



Monika Kataria "A Study on Human Resource Accounting Practices in India" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-4, June 2022, pp.1550-1556, URL: https://www.ijtsrd.com/papers/ijtsrd50347.pdf

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. It is an extension of standard accounting principles. Measuring the value of the human resources can assist organisations in accurately documenting their assets. In other words, human resource accounting is a process of measuring the cost incurred by the organisation to recruit, select, train, and develop human assets. The human resource process in India was established to fulfill a number of objectives within the organization. These include:1. 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.2. To monitor effectively the use of human resources by the management.3. To have an analysis of the Human Asset, i.e. whether such assets are conserved, depleted, or appreciated.4. To aid in the development of management principles and proper decision making for the future, by classifying the financial consequences of various practices.Approaches to human resource accounting were first developed in 1691. The next approach was developed from 1691 to 1960, and the third phase was post-1960.There are two approaches to HRA. Under the cost approach, also called the "human resource cost accounting method" or model, there is an acquisition cost model and a replacement cost model. Under the value approach, there is a present value of future earnings method, a discounted future wage model, and a competitive bidding model. Considering the pros and cons of various models, Chennai-based CA Lakshminarayanan Ramanujam has worked out a simple to use and easy to adopt, unique model titled Give GET, for the Human Resource Valuation and Accounting, while accounting for PEACE.

human resource accounting, India, value, cost, management, standard, organization


IJTSRD50347
Volume-6 | Issue-4, June 2022
1550-1556
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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