Human Resource Accounting's Role In Organizational Sustainability
Source: Clayton State University
This paper suggests that Human Resource Accounting (HRA) can facilitate enterprise sustainability. Traditional accounting has treated costs related to a company's human resources as expenses on the income statement that reduce profit, rather than as assets on the balance sheet that have future value for the company. HRA involves accounting for the company's management and employees as "Human capital" or assets that provide future benefits. HRA may also include nonmonetary measures relating to an organization's human resources.