Main Article Content
Abstract
In every organizations and companies the employees are the most important assets and the success or failure of an organization depends on their qualifications and performance. Human resources are not properly evaluated because most of the enterprises consider the wages and investment made on the qualification and improvement of the staff as expenditure and not as an investment. The most important asset of an organization is human capital or human resource. The concept of Human Resource Accounting has been introduced in 1980s because the old accounting system was not able to provide the actual value of employee’s capabilities and knowledge. This was indirectly affecting the future investments of a company, as each year the cost on human resource development and recruitment increases. HRA is a direct part of the social accounting and aims to provide information on the evaluation of one of the most important components of the organization, namely human capital. This article helps us to study the Human Resources Accounting practices in India and its recent trends, to identify challenges and issues, and to give suggestions based on the findings of the study.