Human resource accounting is defined as valuing, recording, and presenting the worth of human resources in an organization's books of account. It involves identifying human resources as an asset, recording investments made in developing human resources, and measuring costs and values. The goals are to examine personnel expenditures, communicate the worth of human resources, and provide quantitative information to support quality control and decision-making regarding policies, programs, cost reduction, training, recruitment, and manpower planning. Human resource worth can be measured using original/historical cost or replacement cost, though applying it faces challenges due to uncertainties around an individual's life and lack of clear standards.

1. Made By:- Gaurav palariya
BBA 3rd Sem.

2. Human resource accounting is defined as:
 The art of valuing,
 recording and
 presenting systematically
 the worth of human resources in the books of
account of an organization.

3. What is Human Resource?
The total knowledge, skills, creative abilities,
talent, altitudes and belief of an organization
workforces as well as values, altitude and belief
of the individuals involved.
Meaning of Human Resource Management:
A process consisting of the acquisition,
development, motivation, and maintenance of
human resources.

4. The following characteristics of HRA are:
 Its a system of accounting in which identification of
human resources is made.
 Investment made in human resources is recorded.
 Measurement of costs and values are made.
 Changes occurring in human resources over a
period of time are also recorded.
 Communicates information through financial
statements to interested parties.

5. The human resource accounting is more
concerned with decision making area of
accounting.

6.  Formulating policies and programmes for the
development of human resources.
 Decisions regarding cost reduction programes.
 Training and development.
 Recruitment and selection.
 Manpower planning and control.

7. EXAMINING
EXPENDITURE ON
PERSONNEL
COMMUNICATE THE
WORTH OF HUMAN
RESOURCE
PROVIDES
QUANTITATIVE
INFORMATION
PROVIDES SOUND
AND EFFECTIVE
BASIS FOR QUALITY
CONTROL
HELPS IN CREATING
GOODWILL

8. There are two ways to measure
cost through human resource
accounting:
1.Original or
historical cost of
human resources 2.Replacement cost
of human resources

9. Life of a human being is uncertain
No specific and clear cut guidelines
No standards for HRA
Can lead to dehumanisation
Assumption regarding employee is wrong

10. Thank You!