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Human Resource Accounting in India

HRA can provide information for both management and outsiders. However, some models are developed for the valuation of human resources. Even though, these much of benefits are contributed by the HRA, yet its development and application in different industries has not been encouraging. Because lndian companies Act 1956, does not provide any scope for showing any information about human resources in financial statements. Due to the development of business and industries, some of the Indian companies, both public and private, value their human resources and report this information in their annual report.


(a) Public Sector Enterprises Include

(i)                 Bharat Heavy Electricals Ltd. (BHEL).

(ii)               Steel Authority of India Ltd. (SAIL).

(iii)             Minerals and Metals Trading Corporation of India.

(iv)             Cement Corporation of India.

(v)               ONGC

(vi)             Oil India Ltd.


(b) Private Sector Enterprises

(i)                 Tata Engineering and Locomotive Works.

(ii)               Southern Petrochemicals Industries Corporation Ltd.

(iii)             Associated Cement Company Ltd.




Until this date, Human Resource Accounting is not popular in India. So Indian Accounting Standard and also the International Accounting Standard Committee frame the format, provisions and guidelines. Through this effort only an importance of Human Resource Accounting will be created at all levels in the industrial concerns. However, this effort will take some time to incorporate Human Resource Accounting in Indian industries.


======== TEST QUESTIONS ========


  1. What is meant by Human Resources Accounting?
  2. Define Human Resources Accounting?
  3. Explain the advantages of Human Resource Accounting.
  4. Describe the various methods of valuation of Resources.
  5. Briefly explain the objectives of Human Resource Accounting.
  6. List out the various limitations of Human Resource Accounting.
  7. Write Brief note about the Human Resource Accounting in India.