Human Resource is one of the five essential resources available to any organization. It’s also considered as most vital and valuable asset which a corporation possesses and on which its profitability depends, yet the accountants haven't given adequate attention to develop criteria to value Human Resources (Assets) and to indicate these in the position statement (Balance Sheet). If the accounting is to produce meaningful information about the state of affairs of an organization it must develop standards to live the worth of Human Resources both for financial reporting and as an aid to managerial decision-making. Traditionally, the sole entries are made in the earnings report (i.e. Profit and loss Account) about “Human Resources" in respect of their wages, salaries and costs and a “statutory statement" is usually included in the report of the Board of Directors. But now The Indian corporate world is attracted by the most recent concepts like Accounting for Human Resource value, Social Responsibility Accounting, Current accountancy etc. The concept of Human Resource Accounting are often basically examined from two dimensions, viz., the investments in human resource, and therefore the value of human resource. The expenditure undertaken for creating, increasing and updating the human resource quality is thought as investment in human resources.

KEYWORDS: Human Resource, Replacement Approach, Conventional Methods, Cost of Measurement, ROC.