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Accounting Presentation

Human resource accounting is an attempt to identify and report investments in an organization's human resources that are not currently accounted for in conventional accounting practices. It provides information on changes over time to a business's human resources. The objectives of HRA include improving management by analyzing HR investments, considering people as assets, and attracting and retaining qualified employees. HRA helps management with employment, locating, utilizing, transferring, promoting, training, and potentially laying off human resources. It also assists in evaluating training expenditures and understanding an organization's strengths. However, there are limitations around properly valuing human resources due to uncertainty over lifespan and opposition from trade unions.

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Chandan Subudhi
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33 views10 pages

Accounting Presentation

Human resource accounting is an attempt to identify and report investments in an organization's human resources that are not currently accounted for in conventional accounting practices. It provides information on changes over time to a business's human resources. The objectives of HRA include improving management by analyzing HR investments, considering people as assets, and attracting and retaining qualified employees. HRA helps management with employment, locating, utilizing, transferring, promoting, training, and potentially laying off human resources. It also assists in evaluating training expenditures and understanding an organization's strengths. However, there are limitations around properly valuing human resources due to uncertainty over lifespan and opposition from trade unions.

Uploaded by

Chandan Subudhi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Presentation on

HUMAN RESOURCE ACCOUNTING


Introduction
Meaning and Definition of Human
Resource Accounting

““Human Resource Accounting is an attempt to


identify and report investments made in
human resources of an organization that are
presently not accounted for in conventional
accounting practice. Basically it is an
Information system that tells the management
what changes over time are occurring to the
human resources of the business.
Objectives of Human Resource Accounting

 Improve management by analyzing


investment in HR.

 Consider people as its asset.

 Attract and retain qualified people.

 Profile the organization in financial terms.


Importance of Human Resource
Accounting

Human Resource Accounting helps the


management in the Employment,locating and
utilization of human resources

It helps in deciding the transfers,


promotion, training and retrenchmentof
human resources

It assists in evaluating the expenditure


incurred for imparting furthereducation and
training in employees in terms of the benefits
derived by the firm.
Importance of Human Resource
Accounting

It helps in locating the real cause for low


return on investment, likeimproper or under-
utilization of physical assets or human resource
or both.

It helps in understanding and assessing the


inner strength of anorganization and helps the
management to steer the company well
through most adverse and unfavourable
circumstances.
It provides valuable information for persons
interested in making long term investment in
the firm.
Limitations

 There is no proper clear-cut and specific


procedure or guidelines for finding cost and
value of human resources of an organization.

 The period of existence of human


resource is uncertain and hence
valuing them under uncertainty in
future seems to be unrealistic
Limitation
s
There is constant fear of opposition from the
trade unions as placing a value on employees
would make them claim rewards and
compensations based on such valuation

In what form and manner, their value to be


included in the financial statement is the
question yet to be classified on which there is no
consensus in the accounting profession.
CONCLUSIONS
Thank
you

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