Human Resource Accounting (HRA) plays an important role in picking up the overall value of an organization, unfortunately, a majority of the Indian organizations are neglecting this issue. If HRA is...

Human Resource Accounting (HRA) plays an important role in picking up the overall value of an organization, unfortunately, a majority of the Indian organizations are neglecting this issue. If   HRA is also considered as one of the individual valuation elements which deserve more importance and consideration, the value of the organization will be more than what is depicted by the traditional financial statement. What needed is measurement of abilities of all employees in a company, at   every level, to produce value   from   their knowledge   and capability.   “Human Resource   Accounting   (HRA) is basically an information system that tells management what changes are occurring overtime   to   the   human   resources   of   the   business. Keeping the discussion in mind explain different ways of computing HRA and benefits of HRA.