Human Resource Accounting (HRA) means identifying and measuring the worth of the human resources in an organization and furnishing the same information in its financial statement and communicating the information to the stakeholders. In Present times, Human resources are considered as investment of an organization. It is also known as Human Asset Accounting (HRA) which involves identifying the cost associated with the employees like cost incurred on recruitment, selection, training development and recognizing the potential of human resources in monetary terms in its financial statement. An organization can only be made a successful organization by rising efficiency and effectiveness of its employees. HRA is the process towards recognizing and planning the information about HR and communicating this data to Partners.

KEYWORDS:  Human Resource Accounting (HRA), Human Asset Accounting, Financial Statement.