Human Resource Accounting: A Pathfinder in Internal'External Decision Making

Abstract

The shift to a knowledge-based economy has created increased attention on entirely different categories of asset known as human. Human counted as a part of intellectual capital is playing an increasingly important role in the wealth creating dynamic of the knowkd{e-economy. However, this asset is less reflective in traditional accounting system which is the principal supplier of such information' its gathering and presenting. It allows timely and informed decision ^oiing by management and stakeholders. This paper investigate the possiite inclusion of human asset into the accounting system known as human resource accounting and analyze development of modern accounting approach which can contribute to the new age of Human Resource Management practices and the decision making of stakeholders.