As we live in the era of Globalization, the modern way of accounting should be implemented by the Corporate. One of the not latest but definitely a modern view of accounting is HRA. Human resources are considered as important assets and are different from the physical assets. Physical assets do not have feelings and emotions, whereas human assets are subjected to various types of feelings and emotions. In1960s, Rensis Likert along with other social researchers made an attempt to define the concept of human resource accounting (HRA). The American Association of Accountants (AAA) defines HRA as follows: ‘HRA is a process of identifying and measuring data about human resources and communicating this information to interested parties’. This concept yet to get famous in India and various stakeholders will looking forward to this concept for analysing the company before investing in them and will observe that also its impact on the stock market as well as on the company’s valuation model.
Dharmendra Khairajani, Assistant Professor, Unitedworld School of Business (UWSB)
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