Scribd
Upload
109 views16 pages

Infosys: Anuja Bhakuni Roll Number: 08

The document discusses human resource accounting (HRA) and its implementation at Infosys. It provides an overview of HRA, noting that it aims to account for investments in an organization's human resources that are not captured in conventional accounting. Infosys began reporting HRA metrics in 1998-1999 using the Lev & Schwartz model. The document analyzes some aberrations in Infosys's HRA metrics from 2002 and 2008. It also discusses how Infosys values its brand and the HR metrics reported in Infosys's 2017-2018 annual report.

Uploaded by

Anuja Bhakuni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
109 views16 pages

Infosys: Anuja Bhakuni Roll Number: 08

The document discusses human resource accounting (HRA) and its implementation at Infosys. It provides an overview of HRA, noting that it aims to account for investments in an organization's human resources that are not captured in conventional accounting. Infosys began reporting HRA metrics in 1998-1999 using the Lev & Schwartz model. The document analyzes some aberrations in Infosys's HRA metrics from 2002 and 2008. It also discusses how Infosys values its brand and the HR metrics reported in Infosys's 2017-2018 annual report.

Uploaded by

Anuja Bhakuni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

Infosys

Anuja Bhakuni
Roll Number: 08
Human Resource Accounting - An Overview
Human Resource Accounting is an attempt to identify and report investments
made in the human resources of an organization that are presently not accounted
for in conventional accounting practice.

- Woodruff
The need for HRA

Importance of ROK Reporting Value Quantification

Organizations used to Conventional accounting Although qualitative


focus on tracking ROI had a provision of statements about the
(Return on Investment) reporting cost but not of importance of human
and not on ROK (Return reporting value resources were being
on Knowledge) made at AGMs by
several leaders, there
was no data backing
HRA at Infosys:
● Reporting started in 1998-1999
under the heading ‘Human
Resources Accounting’ in the
annual report
● Used the Lev & Schwartz model
● HR metrics reported in the latest
report released by Infosys
1998-1999
1998-1999
2000-2008
2000-2008
2002

● Total Revenue to HR value


declined drastically (0.41 to
0.27)
● Total Revenue to Number of
Analysis of employees has increased from
0.19 to 0.24
aberrations ● Value of HR per employee has
jumped to 0.88 from 0.52
● CONCLUSION: The reason for
the dip in Total Revenue to HR
value has to be due to increase
in cost
2008

● Return on human resource


Analysis of value was the least (4.71), the
reason for this drastic dip was
aberrations the global downturn in the
economy which affected
businesses in India as well
Brand Valuation

Infosys uses brand-earnings-multiple model

The methodology followed for valuing of Infosys brand is as follows:


• Determine brand profits by eliminating the non-brand profits from the
total profits
• Restate the historical profits at present-day values
• Provide for the remuneration of capital to be used for purposes other
than promotion of the brand
• Adjust for taxes
• Determine the brand-strength or brand-earnings multiple.

Brand-strength multiple is a function of several factors such as


leadership, stability, market, internationality, trend, support and
protection. Infosys has evaluated these factors on a scale of 1 to 100
internally, based on the information available.
HR Metrics Reported in
2017-2018 AR:
● Total strength increased from
2,00,364 to 2,04,107
● Rise in attrition rate from 15% to
16.4%
● 1.68 million person days invested
in training
References:

• https://www.researchgate.net/publication/305723324_Human
_Resource_Accounting_at_Infosys-_A_Case_Study
• https://www.infosys.com/investors/reports-filings/annual-
report/annual/Documents/Infosys-AR-99.pdf
• https://www.infosys.com/investors/reports-filings/annual-
report/annual/Documents/infosys-ar-18.pdf
https://www.infosys.com/investors/reports-filings/annual-
report/annual/Documents/AR-2010/index.html
Thank You!

You might also like