Few Questions???

What is the value of human resource in

the country today??
What is the true position of the human
resource in the country or any
industry??

INDI
A

UNITED
STATES
AUSTRA
LIA

GERMA
NY

CHINA

PORTUG
AL

CANADA

GREECE

ITALY

Human Resource
Accounting
Definition by M.N.Baker: It is an
accounting profession to quantify cost
and Value of employee employing in the
organization.
It is the process of identifying
Investments made by the
organization in the Human Resource
Assets.
Human Resource Accounting is the
process of assigning, budgeting, and
reporting the cost of human
resources incurred in an organization,

CONCEPT
VALUE OF
HUMAN
RESOURCES

INVESTMEN
T IN HUMAN
RESOURCES
Expenditure
incurred on
creating,
increasing and

YIELD GENERATED
IN FORM OF HIGHER
PRODUCTIVITY AND
HIGHER
INCOME/PROFIT IN

ORY OF HUMAN RESOURCE ACCOUNT

BASIC
PREMISES
Valuable
resource
Manageme
nt

OBJECTIVE
S
Decision
making
Efficiency

SIGNIFANC
E
Designing
Training
Module
Manpower
Planning
Motivation
and
Reward of
employees

Types of Cost

RECAP
Human resource accounting is an attempt to
identify and report investment made in
resources of the organization that are not
presently accounted for under conventional
accounting practice "(woodruff).
Prof. Sidney Davidson defines human
resource accounting as a term used to
describe a variety of proposals that seek to
report and emphasize the importance of
human resources-Knowledgeable, trained and
loyal employees-in a company's earnings
process and total assets.

Approach
HR COST
ACCOUNTI
NG

HR VALUE
ACCOUNTI
NG

INTRODUCTION COST,
TRAINING AND
DEVEOPMENT COST,
OPPORTUNITY COST,
PROMOTIONAL COST,
ETC.
VALUE OF
INVESTMENTS MADE BY
THE ORGANIZATION.
DIFFERENCE IN
PRESENT AND FUTURE
EARNINGS OF THE
FIRM.
BASED ON USE OF
MODELS LIKE LEV AND
SHWARTZ, ETC.

FEW EXAMPLE Cost

Part

Value Part
Based on Lev and
Schwartz model
Calculates future value of
employees taking into
consideration their current
earnings and age factor in mind

QUESTION COMES OF CHECK??

HR AUDIT

AT LAST THE PROCESS,

ESSENCE

EXAMPLE

QUOTES

Employees are the most valuable resources of comparison

in the services (software, Banking, Management
Consultancy, etc) sectors. Like all other resources the
company the employees possess value because of
providing future services

K
N
A
H
T
U
O
Y