Abstract
This paper reviews the accounting and management literatures relating to intellectual capital. It identifies anddiscusses the major milestones in the intellectual capital (IC) reporting movement and significant contributionspromoting external reporting of IC. It was identified that with a view to enabling organisations provide a clearunderstanding of firm value creation several national and supranational institutions have produced guidelinesand frameworks for externally reporting IC. In many cases regulators, the accounting profession and accountingscholars have driven these initiatives. Although IC reporting has been identified as an important aspect ofreporting not only in large corporates but also in small and medium enterprises and in the not-for-profit sectorthe existing guidelines for reporting of IC have not been embraced by organisations. Possible future directionsfor IC reporting are proposed.
Highlights
The importance of intellectual capital (IC) information for security valuation is well-understood (Johanson, Koga, Skoog & Henningsson, 2006)
The discussion to follow is organised by the type of entity that has been the focus of the various IC reporting initiatives
Austrian government took advantage of the experience they had gained from Austrian Research Centres who had been publishing IC reports for several years when stipulating the preparation of an IC report
Summary
The importance of intellectual capital (IC) information for security valuation is well-understood (Johanson, Koga, Skoog & Henningsson, 2006). Little or no action was taken to encourage and guide the inclusion of such information in business reporting until the early 1990’s. This paper discusses the major milestones in the IC reporting movement and significant contributions promoting external reporting of IC. It does not concern the developments that have taken place in the space of IC measurement and management for internal decision making purposes. The discussion to follow is organised by the type of entity that has been the focus of the various IC reporting initiatives
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