Human Resource Accounting refers to recording of expenditure incurred on human assets of any organisation. This is against the traditional accounting which only records the expenses due to which profit is reduced. As results of this agitation and therefore the need for harmonization of human with other resources in financial reporting, this study was meted out. With the arrival of the new economy, knowledge-based economy it's been concluded that human resources becomes increasingly more important in determining the full value of a company. Human capital refers to a collection of information and competence, skills and training, innovation and capabilities, attitudes and skills, intelligence and motivation of the those that form the organization. Human resource is the most precious and valuable asset for any organization and successful utilization of all other resources depends directly or indirectly on the previous and hence, they need to be importance and a selected position in the record. But, in reality, they're totally ignored and aren't given the worth, they worth for, at the most of the places. Most of the organizations are still adopting the normal accounting practices where they consider the expenditure on human resources as revenue expenses rather than considering it as an investment under contemporary accounting, under which human resources are valued and shown in the record as ‘asset’. Through this research work, a shot has been made to point out the importance of Human resources in the organization, over all other assets. Findings of the research study provided a sign that HRA features a great impact on the Earnings after tax of the businesses, and also the HR value is increased by increasing the salary and bonus of the staff. There should be a separate standard for HRA or some statutory provision in the Companies Act, in order that companies could adopt such practice compulsorily.

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Keywords: Human Resource, Valuation, Accounting, Labour Welfare, Recognition, Capital Structure.