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Abstract
HRA is not merely an acknowledgement of the paramount position occupied by employees vis-avis other resources; it also has many benefits. Information generated by HRA can be used for a host of managerial and strategic decisions like recruitment, turnover, and personnel advancement analysis, in re-appraisal of expenditure on services and training and capital budget tin.
When linked to Return on Investment (ROI), I-IRA becomes a vital tool for value addition and cost rationalization. It can also serve as a key factor in case of mergers and takeover decisions. Where the human asset role, which HRA can help in creating, is goodwill for a company.
The company can project itself in having best practices with superior policies in place, Experts and my believe that this may help the organization to attract more investments.
The American Accounting Association's committee on Human Resource Accounting (1973) has defined Human Resource Accounting as "the process of identifying and measuring data about human resources and communicating this information to interested parties "here vital consideration is qualification of the Economic value of the people is an organization. .,,