Human Resource Accounting Practices and its Impact on Managerial Performance-A Study

Human resources are an important asset of every organisation and play significant growth in enterprise and economy. The concept of human resource accounting (HRA) is of recent origin and gaining global importance in preparation of financial statements. Due to lack of statutory regulation in practicing of HRA, it is failed in finding place on par with practicing other accounting branches. Over the years the industries seemed to realise the importance of people and perceiving human resources as its strategic assets and gradually there is an increasing experience in adoption of HRA practices besides traditional accounting. This study attempts in identifying the impact of HRA practices in managerial performance analyses of 50 HRA professionals’ responses who are working in reputed organisations in Bengaluru, Karnataka by applying one sample T test and percentage analysis. The results showing significant impact and high effectiveness of HRA practices on managerial performance and organisational efficiency and concludes with recommending compulsory practice of HRA which can result in fair presentation of business valuation and enhancing overall growth of business