Human resources are not yet treated as assets at par with other assets. But there is a growing opinion in favor of treating human resources at par with other assets from the financial accounting viewpoint. Though economic valuation technique is a part and parcel of human resource accounting, economic value of human resources cannot be presented in the balance sheet because it relates to probable future occurrence of earnings, compensation and some other criteria. In other words, economic value means the value of the potential services that are likely to be provided by an employee to the organization that has employed him during the probable continuance of service in the future. And probable earnings, compensation and some other criteria are considered for estimating economic value of a person. Thus the economic value is something other than the historical costs of human assets.

KEYWORDS:  Human Resources, Economic valuation Technique, Human Resource Accounting.