Intellectual Quest ISSN 2349-1949 Vol-10, Dec 2018 U.G.C.Approved Journals (Sr.No. 64069) 183 ACCOUNTING OF HUMAN RESOURCE– AN INDIAN PERSPECTIVE Dr Tajinder Kaur 1 Abstract Accounting is not just recording financial transactions of an organisation rather it also required to give correct picture of the organisation to the managers of the business to take vital decisions regarding factors of productions. Human resource is one of the most prominent factors of production. It becomes more important in present age when the business switches over to service sector where services matters not the product. In such atmosphere accounting of human resource cannot be ignored. The paper draws attention to the use of human resource accounting in Infosys. The collected information is analysed using statistical tools like averages, ratios, variances, standard deviation etc. It is observed that although Infosys is providing such information on voluntary basis but lack of support and appreciation by the accounting rule making bodies and government the inclination of the company to provide such information is slightly declining. Key words: - Accounting, GIST HCX, Human Resource “Our core corporate assets walk out every evening. It is our duty to make sure that these assets return the next morning, mentally and physically enthusiastic and energetic.” N. R. Narayana Murthy, Chairman and Chief Mentor, Infosys Technologies Opening statement of the Infosys Annual Report, 2007-08 INTRODUCTION Human resource is the most important asset in a technology driven company. To meet its evolving need, its priority is to attract and engage the best talent in the right location with the right skills. As a standard practice Infosys reports the value of its employees using Lev and Schwartz model. It has developed a new model to qualify this value, in partnership with GIST advisory this year. The Infosys GIST-HCX model is based on a present value calculation of the increase in future in future earnings of employees during their employment at Infosys. Unlike conventional models it also accounts for the impact of attrition on Human Capital value, and therefore also qualifies the value of the positive Human Capital externality being generated by Infosys. Human capital externalities refers to the benefit derived by society when employee whose Human Capital value is enhanced due to training and employee development at Infosys, leave the company. The model discounts future earnings at an appropriate discount rate and utilises a long run inflation rate consistent with the R.B.I of India’s target for inflation expectation. The information provided by Infosys in its annual report is discussed by using 2011 as a base year. The particulars regarding names and other information is given in Annual report in accordance with the provision of section 217(2A) of the Companies Act. REVIEW OF LITERATURE As accounting is an applied science and art. It is not in exact form and with its development it keeps on changing. The concept the human resource accounting is developed with the passage of time as the researchers contributed in this field differently. Shri Pragnesh B. Shah (2004) analysed Human resource accounting is in infancy and there is need of unification of presentation of such information. Aditi Dixit (2005) observed some accounting standard is required to bring unification in presentation of accounting standard of human resource accounting. Eric Flamholtz (2005) investigated that positive culture affects the contribution of the employees. Dr. Arindam Gosh and Prof Asit Gope (2009) according to him quantification of information related to human resource helps in taking decisions related to human resource. Yagnesh M Dalvadi (2010) examined that there is difference in accounting of human resources of private and public sector organisations. Raunak Narayan (2010) observed that calculations of various ratios related to human resource helps in studying human resource but this subject has issues and challenges in it. Dr. Sandeep (2012) analysed that accounting of human resource has relevance but it has hurdles in its adoption within the organisation and outside the organisation. Michael Mankins, Karen harris et al (2017) observed that present age is the age where value of human capital outweighs the importance of financial resources which further supports the requirement of research in the field of human resource accounting. OBJECTIVE OF STUDY To study the human resource accounting practices in Infosys. SOURCES OF DATA Both primary and secondary sources are used to collect data about the company. The main source of secondary data was from the website of the company, publishes articles and primary data was collected through the email of the officials of the company. 1 Assistant Professor, P.G. Govt College, Sector 11, Chandigarh