The fundamental strength of an organization is its human capital. Human capitals are the combination of energies, skill, talent, and knowledge of the people. Companies cannot be run by machines or systems alone, however efficient it may be. The human capitals are assets that appreciate through knowledge and experience which they get while working in an organization. The human capital is an inevitable element in the 21st century for an organization. Yet accounting is concentrated on physical and financial resources of an organization without bringing the vital ingredient of the social system i.e. human capital. In this paper an effort is being made to study the concept of human resource accounting and to discuss the reporting practices which should to be followed by companies.
KEYWORDS: Human Resource, Human Resource Accounting, Human Capital.
