Reporting of Human Resource Accounting at National Levels

While HRA has been in India for over a decade and leads BHEL, awareness is only being implemented now. However, the level is still small for awareness and acceptance, as many companies do not take the initiative, despite the fact that the data is available, to give shareholders public numbers.

The lack of an industry standard is a major deterrent. That means each company must develop its own standard, which can become an awkward process because many of them continue to improve their business. The establishment of a standard can help industrial organisations such as Nasscom. The need for extensive research is another aspect which works against accepting HRA. Many companies do not want to find their HR’s value complexly. While most (large) enterprises have access to these best practises, it is not an economically viable option for small and medium-sized enterprises. In addition, as is Naresh Taneja, HR Director of HCL Technologies, many people are uncertain how useful HRA is in decision-making (Mumbai, previously Gulf Computers). Due to the dynamism of this industry, it is difficult to predict what will be your future needs and how technology in the near future will shape. Only the HRA advantages are raised here. In addition, HR communication is voluntary. In this context, HR disclosures from companies across companies and industries are unstructured, inconsistent and incomparable. Even these HRA communications are of little assistance with decision making since they are unaudited and untrustworthy.

However, in order to overcome these problems, each company needs to develop its own standards which can be a tedious process, as no industry standard or industry standard exists. However, industrial groups such as Nasscom and Assocham can help to set a standard. Since the Indian Institute of Chartered Accountants (ICAI) does not have laws or rules in 1956, and since no accounting norm is in place, some companies have stopped this practise. ICAI and other regulatory and accounting authorities should draw up certain guidelines regarding the valuation and reporting of HR in order to ensure that the information disclosed is objective, reliable and relevant. A tool to compare and standardise HRA divulgations is the current HRADI. The accounting authorities should make efforts to integrate their opinions on this subject with the requests of decision makers to establish a uniformly acceptable HR assessment method and reporting method (management and investment). In knowledge-based sectors where HRA is regarded as the main elements to monitor its business activities, HRA can help organisations achieve their aims. In measuring and reporting on such valuable assets, the government and other professional and responsibility authorities should consider the high importance properly initiated by HRA at the national and international levels.