This document discusses human resource accounting (HRA), which aims to assess the value of human capital for businesses and improve human capital development. HRA treats human resources as organizational assets by assigning costs to recruiting, training, and developing employees. This provides additional information for management decision-making beyond traditional financial accounting. HRA approaches include historical cost and present value methods of valuation. Benefits of HRA include facilitating decisions around staffing, promotions, retention and investments in physical versus human assets. However, challenges also exist such as difficulty measuring future benefits from human resources and finding relevant accounting standards.