Abstract

Human resource accounting (HRA) is an old concept in corporate and academic research while new in economics. This study explores new dimension for valuation of human capital asset (HCA), through parallel comparison with international financial reporting standards (IFRS). During the study, few weaknesses were identified in conventional accounting standards. Based on these finding, new model for valuation of HCA was developed. The objective of this study was to encourage both researchers and professionals to implement HRA concept in business world. Based on the observations, it is concluded that in current era businesses consider HRA as an effective tool to manage human resource (HR).

Key words: Human resource accounting (HRA), human capital asset (HCA), human resource (HR), IFRS/IAS earnings; NBM, net benefit model.