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09 May 2023, Volume 38 Issue 3
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Abstract
The idea of Human Resource Accounting (HRA) has been a debatable issue by academicians, accountants and standards setters universally. This study critically assesses the concept of Human Resource Accounting in order to unveil its prospects and challenges. It is generally accepted that human capital are important resource of the firm. The achievement and development of any firm depends on its human assets. Without human capital, the other assets cannot be functionally successful. Unless an organization has correct man, human assets, to manage its happenings sometimes it may badly fail even though it possessed with plentiful physical assets. Thus, the significance of human assets cannot be neglected. Sadly, till today universally accepted accounting principles of this important asset, viz., the human assets has not been adapted. Therefore, at this moment, it becomes crucial to give due attention on the proper development of such a significant resource of a firm. The study recommended that a universal model/approach for reporting human capital measurement should be agreed upon, while campaigns and similar publicity given to International Financial Reporting Standard (IFRS) should also be given to the application of HRA in the valuation of human capital in different organizations.
Keyword
Human Capital, Human Resource Accounting, IFRS, Organization, Prospects, Challenges etc.
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