This document discusses human resource accounting and provides definitions, objectives, importance, and methods of valuation. It can be summarized as follows: Human resource accounting is defined as identifying and measuring data about human resources and communicating this information. It aims to furnish cost and value information to aid in proper decision making and facilitate valuation of human assets. Historical attempts to value human resources date back to the 17th century. Methods of valuation include cost-based approaches like historical cost and replacement cost, and non-monetary approaches. Human resource accounting provides important benefits to management in areas like employment, utilization, and evaluation of training expenditures.

1. HUMAN RESOURCE ACCOUNTING Presented by PrashantGoski

2. INTRODUCTION Human resource Physical resource

12. Helps in deciding the transfers, promotion, training & retrenchment of HR

15. Investment in human resource

17. Asset is anything which is owned by the entity to derive service in future and should have legally enforceable claim

18. Does not:-

19. As such there is no guarantee of deriving benefits from the existing human resources in future and has no sales value like other assets

20. Does :-

22. Social capital

23. Emotional capital

25. 2. Training (Development) Cost

26. 3. Welfare Cost

28. (ii) Selection Cost

29. (iii) Placement Cost

31. (ii) On the Job Training Cost

32. (iii) Special Training

34. (ii) Canteen Expenditure

35. (iii) Specific and General Allowances

36. (iv) Children Welfare Expenses

38. (ii) Ex-gratia

39. (iii) Multi-trade incentives

41. Example: A firm has started its business with a capital of Rs.10,00,000. It has purchased fixed assets worth Rs.5,00,000 in cash. It has kept Rs.2,60,000 as working capital and incurred Rs.2,40,000 on recruiting, training and developing the engineers and few workers. The value of engineers and workers is assessed at Rs.8,00,000.

42. Evaluation of Human Resource BALANCE SHEET (INCLUDING HUMAN RESOURCES)

43. Methods of valuation of human assets a) Cost based approaches: b) Monetary value based approaches c) Non- monetary value -based approaches:

45. Replacement Cost

46. Opportunity Cost

48. Conclusion

49. Thank You…