Prevailing Practices of Human Resource Accounting: A Case Study of IT Industries of India

Sandeep Ojha
(International Business Department, College of Applied Sciences, Salalah, Sultanate of Oman)

Abstract: Now the day’s businesses have reached at its developed stage. In any type of business two types of resources are used; active resources and inactive resources. A business cannot be operated unless there is human resource. There are different compositions of the human resource. Human resource is called as active resource as it uses the other non active resource and makes it possible to the best utilization of that inactive resource. We also know that in modern manufacturing environment the quantity of human resource has been reduced up to a great extent but still without a minimum quantity and quality of human resource, a business cannot be operated. Hence, the human resource will always have an upper hand over the other inactive resources. As the HRA is compulsory neither under the Companies Act, 1956 nor under the Accounting Standards, this paper is an attempt to explore prevailing practices of HRA in Infosys Technology Ltd by applying Lev & Schwartz model.

Key words: HRA; active resources; inactive resources; Infosys; human capital

JEL code: M41