Current Issues, Recent Advancements, and Future Directions in Human Resource Accounting

We have witnessed a significant transformation in the world economy and the organisations that comprise it. The economy of old was manufacturing‐based and relied heavily on tangible assets as determinants of value. In contrast, the present‐day economy is based on knowledge and information, intangible assets that are embodied in people. This shift has triggered the development of tools with which to measure these intangible assets. One accounting tool that is directly relevant to the measurement and, in turn, the management of human capital is human resource accounting. The purpose of this article is to discuss some current issues, recent advancements, and possible future directions for further development.