Intellectual Capital Reporting and Disclosure Practices in Sri Lanka

Abstract

This chapter examines disclosure practices of intellectual capital in the Sri Lankan context. The chapter provides an empirical analysis to showcase the relationship between intellectual capital reporting and the management perception. The three capital components identified in the intellectual capital are human capital, organizational capital, and social capital. Those capitals give a considerable contribution on the wealth of the organization and the main problem is the subjectivity and complexity of the disclosure practices of the listed companies in Colombo Stock Exchange from 2013 – 2016. This study is based on the intellectual capital disclosure practices published in annual reports for the period of 3 years. The managerial perception and company characteristics were linked with the intellectual capital disclosure practices. The study found no common procedure for disclosure among the annual reports while the details of intellectual capital disclosures vary considerably from one annual report to another.