Human resource accounting is the process of identifying and reporting the investments made in the Human Resources of an Organization that are presently not accounted for in the conventional accounting practices. In simple terms, it is an extension of the Accounting Principles of matching the costs and revenues and of organizing data to communicate relevant information.
Objectives:
1.To furnish cost value information for making proper and effective management decisions about acquiring, allocating, developing and maintaining human resources in order to achieve cost effective organisational objectives.
2.To monitor effectively the use of human resources by the management.
3.To have an analysis of the Human Asset, i.e. whether such assets are conserved, depleted or appreciated.
4.To aid in the development of management principles and proper decision making for the future by classifying financial consequences of various practices.
[Source: wikipedia.com]
Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University
