‘Human resource accounting’ (HRA) is a term of relatively recent origin: research on HRA only began during the 1960s. Initially, the objective was to improve corporate financial reporting by accounting for ‘human assets’ and, in turn, to increase the representational validity of income and asset numbers. A related purpose was to prevent prevailing accounting conventions from motivating suboptimal treatment of people — specifically, to reduce the likelihood that liquidation of human resources would not be revealed in financial reports because of the failure to account for investments in people as assets.
Flamholtz, E. and Wollman, J. (1978), "The Development and Implementation of the Stochastic Rewards Model for Human Resource Valuation in a Human Capital Intensive Firm", Personnel Review, Vol. 7 No. 3, pp. 20-34. https://doi.org/10.1108/eb055364Download as .RIS
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