ABSTRACT: Today, workforce of the organization has proved to be the greatest asset of strategic importance, necessary for its long term sustainability. The true worth of workforce must be accounted for in the right perspective to ensure growth and development of any organization. With the transition to knowledge society, the strategic importance of human capital demanded a shift in past practices in presentation of financial statements of the organization. Though the idea of accounting for human resources has gained active consideration over a few decades, but unfortunately no universally verifiable objective method has been developed till date. An attempt has been made in this paper to evaluate the prevailing practices of Human Resource Accounting (HRA) in India. The article highlights the significance of valuing human resources for depicting the true and fair view of the organization’s financial statements.