Abstract
In the current information age, Intellectual capital has become a type of critical resource that can create value as well as sustain a competitive advantage for firms. This paper reviews some key intellectual capital (IC) measurement and reporting models, comprising the Balanced Scorecard, Skandia Navigator Scheme, Intangible Assets Monitor, the DATI guideline, and the MERITUM project. Simultaneously, we synthesize these models to develop a conceptual template in the form of an IC statement, which can be used as a management tool for companies to measure and report their IC resources. It is expected that our paper should have some implications for companies and corporate reporting policy makers.
Highlights
We review the key intellectual capital (IC) measurement and reporting models, and synthesize them into a template taking the form of an IC statement, as a conceptual framework for firms to measure and report their IC
(or IC)” comprising internal structure, external structure and employee competence in addition to the visible equity represented by book value, which is the theoretical foundation for the Intangible Assets Monitor (IAM)
According to Johanson et al (2006), the MERITUM guideline is an outcome from a number of theoretical and empirical research projects in relation to management control, capital market and classification issues, and it can be applied as an IC management tool for companies
Summary
1.1 The background of the company 1.2 The adopted IC framework: including the definitions of IC and its components, as well as relationships between the components 1.3 Vision/mission statement 1.4 The objectives of the report 2. Internal structure statement 2.1A summary of internal capital resources, challenges and activities 2.2 Key performance indicators (KPIs) regarding internal capital (Note 1) 3. Employee competence statement 4.1A summary of human capital resources, challenges and activities 4.2 Key performance indicators regarding human capital 5. Notes Including discussion of relevant accounting policies, and the explanation of some IC KPIs In addition, the following principles should be followed in the framework: Easy to prepare (not very costly). Include both qualitative and quantitative information, using narratives (Note 2) and pictures for the presentation of qualitative information. Avoid an exhaustive list of IC KPIs: firms should choose the most appropriate KPIs in the light of their own situations or strategic needs
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
