Employees are the most valuable resources of comparison in the service (software, banking, management consultancy, etc.) sector. Like all other resources of the company, the employees possess value because of providing future services.

“Our main asset is our people!”

How true is this oft-repeated statement made by the management of all knowledge-driven companies? The problem in fact starts when it comes to assessing the real value of human assets. While most organizations can readily give detailed information about their tangible assets like plant and machinery, land and buildings, transport and office equipment, there is no formal record of investment in employees. Human assets accounting or human resource accounting (HRA), which stands for measurement and reporting of the cost and value of people as organizational resources, is still to become an accepted trend in the Service industry

In tracing the history of human resource accounting, most reviewers would agree that the topic is now experiencing something of a revival. This research set out to explore why HR accounting is regarded as important, to whom it is important and its links with organizational and HR strategies.

SIMS Component analysis revealed two reasons why measuring human resources is perceived as being important. The first illustrates the view that 'measurement reflects the strategic and competitive importance of human resources', while the second suggests that, 'to earn credibility, HRM must be expressed in financial terms'. Further analysis highlighted the importance of senior management and financial managers' support for measuring human resources and drew attention to what may appear to be a 'hard view' of HRM held by HR managers in relation to why they consider this important.

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