Although Human Resource Accounting (HRA) is a relatively new field, its development has already passed through several discernible stages. The first stage of development, from 1960-1966, was marked by interest in HRA and the derivation of basic HRA came from a variety of sources, including the economic theory of human capital, organizational psychologists' concern for leadership effectiveness, the new Human Resource (HR) perspective, and a concern for human assets as components of corporate goodwill. This article attempts to evaluate and report the present scenario of HR concerns. This article covers four different aspects on which proper attention is to be paid by the people interested in HR reporting. In particular, the article discusses HRA practices in HPCL and concludes with HR reporting.

The Indian corporate sector is in a state of turmoil. Unprecedented change and paradigm shift in a turbulent world have revolutionized the way business is to be carried out. This decade has seen the globalization of business with intense competition amongst the local as well as the international players. While the whole gamut of corporate management needs a review, a hard look is needed at the utilization and effectiveness of its most critical resource - the HR. So, HR reporting is most necessary in business organizations.

A number of people have contributed to the development of models for evaluating the HR. They do not deal with the mode of recording and reporting of accounting information relating to HR in the books of accounts of financial statements of a firm. This has been left to the description of the accounting bodies, which have to develop a generally-accepted basis for valuation, recording and reporting of information related to human resources information.

The practice of valuation and reporting for HR has been reported by some of the companies in India. Most of these companies, especially in the public sector, follow the most popular model, viz., Lev and Schwartz Model, for the valuation of human resources in their organization.

Valuation adopts the guidelines advocated by the Lev and Schwartz Model and also by Eric Flamholtz and Jaggi. Accordingly, the Present Value (PV) of future wages payable to employees, as adjusted for efficiency factor, is considered as HR value. In this process, factors such as the number of employees are likely to move upwards and provision for likely future wage revision, retirement and promotion and performance rating are considered.

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