Necessary of Human Resources Accounting

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Presentation on Important of HRA
Date of Presentation: 13th October 2023
Presented by:
Md. Taijul Islam
Roll No: 221325107
MBA
Jatiya Kabi Kazi Nazrul Islam University

2. Topic of Discussion
 Definitions of HRA.
 Objectives of HRA.
 Importance of HRA.
 Limitations of HRA.
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Definitions
 Human resource accounting is the
measurement of the cost and value of
the people for the organization.

4. Objectives of HRA.
 Improve management by analyzing
investment in HR.
 Consider people as its asset
 Attract and retain qualified people
 Profile the organization in financial terms
 It provides a sound and effective basis of
human asset control, that is, whether the
asset is appreciated, depleted or conserved.
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Importance of HRA
 It develops effective managerial decision-
making.
 It enhances the quality of management.
 It prevents misuse of human resources.
 It helps the efficient allocation of resources.
 It increases human asset productivity.
 It improves their morale, cooperation, job
satisfaction and creativity.

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Importance of HRA
 It develops human efficiency.
 It influences the individual behavior, attitude
and thinking in desired direction.
 It helps in long term investment decisions.
 It provides good basis of human asset
control.
 It helps the development of management
principles.
 It ensures good monitoring of effective uses
of human resources

7. Limitations
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 No specific procedure for finding cost and
value of human resources of an organization.
 Form and manner of including HRA value in
the financial statement is not clear.
 Employee with a comparatively low value
may feel discouraged.
 Tax laws do not recognize human beings as
assets.

8. Open
For
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