Human resource accounting is the process of classifying, planning, and communicating the organization's investment and cost of human resources, including wages and salaries, as well as training expenses that are currently not included in or ignored in accounting standards. Accounting is the process of estimating and projecting the value of human capital and the value generated by it, in the same way as physical assets such as plants, machinery, land, and buildings are estimated and documented in books of account or along similar lines. The human resource should also be calculated, recorded, and disclosed in the financial statements. This paper focuses on the objectives, statute provisions governing human resource accounting, as well as the significance, advantages, methods, and process of human resource accounting, in order to investigate these issues and challenges and, finally, to make recommendations based on the study's findings.

KEYWORDS: Human Resource Accounting, Human Capital Estimation, Issues, Challenges.