Date of Award


Document Type

Independent Study

Degree Name

Master of Science (MS)


Financial accounting is dynamic. Its generally accepted accounting principles are the result of an evolutionary process that can be expected to continue. Accounting is not an art which is an end in itself, rather it is an activity with a purpose. It is an information system whose principles change in response to changes in economic and social conditions, to new knowledge, and to demands of users for more serviceable financial information. Human Resource Accounting (H.R.A.) is a part of this evolutionary process. It is a response to a need for information in an area previously considered to be outside the realm of accounting. It is an effort to quantify a resource considered qualitative

First the author will examine the force behind H.R.A. which has led accountants to question the adequacy of the traditional accounting model which ignores the human resource. The benefits of an increased awareness of the human resource through H.R.A. will be presented in the utility of human resource information. Because H.R.A. is in the developmental stage there is no one model which has been accepted as an authoritative means to value the resource. H.R.A. measurement will consider several proposals and question their theoretical basis. The process of change is an evolutionary one, i t therefore moves slowly. Each step must be critically reviewed. The section Feasability of Human Resource Accounting will serve this purpose as well as provide a summary of the concept