Human Resource Accounting (HRA) is a new branch of accounting. It follows the traditional concept that all expenses for human capital formation are taken as a charge on the revenue of the period as they do not create any physical assets. The modern view is that the cost incurred for any asset as human resources must be capitalized as it provides measurable benefits in monetary terms. Measuring the costs and value of people for organizations is very important, the costs incurred in recruiting, selecting, hiring, training and developing employees along with economic values ​​are very relevant to human resource accounting . The American Accounting Society on HRA defines HRA as follows: Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay “It is the process of identifying, measuring human resources data, and communicating this information to stakeholders.” HRA is the measurement and quantification of human organizational inputs such as recruiting, training, experience and communications. It is the art of valuing, recording and presenting the work of all human resources in the accounts of an organization. It is an information system towards changes in the human resources of an organization. Like any audit, HR audit is also a formal systematic process, designed to examine the strategies, policies, procedures, documentation, structure, systems and practices with respect to the organization's human resources management . Systematically and scientifically evaluate existing human resource strengths, limitations and development needs from the broader perspective of improving organizational performance. Please note: this is just an example. Get a custom paper from our expert writers now. Get Custom EssayHuman Resource Accounting (HRA) is a new branch of accounting. It follows the traditional concept that all human capital formation expenditures are taken as a charge on the period's revenue as they do not create any physical assets. The modern view is that the cost incurred for any asset as a human resource must be capitalized as it provides measurable benefits in monetary terms. Measuring the costs and value of people for organizations is very important, the costs incurred in recruiting, selecting, hiring, training and developing employees along with economic values ​​are very relevant to human resource accounting . The American Accounting Society on HRA defines HRA as follows: It is the art of evaluating, recording, and presenting the work of all human resources in an organization's accounts. relevant for a wide variety of decisions made by external and internal users. Accounting for human assets constitutes an explicit recognition of the premise that people are valuable organizational resources and an integral part of a resource mix. This study will be useful to different users of accounting information for their daily decision making.