A Critical Evaluation of Measuring the Immeasurable: Human Resource Accounting (HRA)

Abstract

The contemporary distorted narratives on Human Resource Accounting and an unbridled spur of assorted horizons on HRA manifest the dire need of a sound and cognitive reasoning and analysis of human resource accounting.The cryptic metaphysics on measuring the immeasurable asset, i.e. human resource has gained much momentum for research and deliberations over the last five decades. This paper highlights the astounding growth and development made in the domain of human resource accounting. The paper also exemplifies the constraints on the measurement aspect of human resource accounting and examines the validity of the deceptive financial statements.  The paper also discusses the development of human resource accounting made in the international arena and accentuates the importance of measuring the value of human resource highlighting the examples of some Indian companies that made unprecedented effort to value and account human resource in the financial statements.