Page 82 - DCOM409_CONTEMPORARY_ACCOUNTING

Unit 6: Human Resource Accounting

6.6 Keywords Notes

Historical Accounting: Under historical accounting system, accounts are prepared without regard
to changes in the price levels.

Human Resource Accounting: Human resource accounting is the art of, valuing, recording and
presenting systematically the worth of human resources in the books of account of an organisation.

6.7 Review Questions

1. What is HRA? Why HRA?

2. How HRA is different form conventional accounting? Discuss with suitable example.
3. Like any accounting exercise, HRA too depends heavily on the availability of relevant and
accurate information. How?

4. Human Resources Accounting provides useful information to the management, financial
analysts and employees. Identify the key informations.
5. Identify the scope of HRA.

6. What are the key objections against HRA?

Answers: Self Assessment

1. Process
2. Presenting
3. Companies act 1956
4. Decision making
5. Data
6. Turnover cost
7. Bargaining power
8. True
9. False
10. False

6.8 Further Readings

Books Chandra, P., Financial Management - Theory and Practice, New Delhi, Tata McGraw
Hill Publishing Company Ltd., 2002, p. 3.
Sudhindra Bhat, Financial Management, New Delhi, Excel Books, 2008.
Van Horne, J.C. and Wachowicz, Jr, J.M., Fundamentals of Financial Management,
New Delhi, Prentice Hall of India Pvt. Ltd., 1996, p. 2.

Online links www.globusz.com
www.scribd.com

LOVELY PROFESSIONAL UNIVERSITY 77