MEASUREMENT OF INTELLECTUAL CAPITAL

Authors

  • Dr. Meetakshi Pant Assistant Professor, Department of Commerce, Shaheed Bhagat Singh College (M), University of Delhi,

Keywords:

Immaterial assets, Intangible assets, Calculated Intangible Value (CIV), Intellectual capital (IC)

Abstract

Intellectual capital (IC)includes intangible assets that are the real source of the creation of value in a company. Intellectual Property includes assets which help it in adapting to fast change environment and the ability to create future value creation either through in-house research or through the purchase of new technology from outside.  The measurement of IC has become very relevant and more and more statutory bodies are recognizing the needs of standardizing the accounts standards and include IC in balance sheet. Valuation of IC is very essential to truly determine the value of an enterprise. If the company brings out its own value of IC, then it will be subjected to creative accounting. Standardization of the complete framework of IC will take time and sustained efforts and hopefully accounting standards will inculcate IC values in balance sheets. But yes, before that the journey of valuation of IC will continue.

References

I. Agustín, P., Escuer, E., and Alesón, R., (2007). ‘A Q Model Investment System in Material and Immaterial Assets’, European Research Studies Journal, 2007, vol. X, issue 1-2, 43-64.

II. Brooking A. (1996). ‘Intellectual capital: core asset for the third millennium enterprise’, New York: International Thomson Business Press. 205 p.

III. Edvinsson, L. and Malone, M., (1997). “Intellectual Capital”, Harper Business, New York.

IV. Kendrick, J. W. (1994) ‘Total capital and economic growth’, Atlantic Economic Journal, 22(1), 1–18.

V. Nucci, F., et al., (2005). ‘Is Firm’s Productivity Related to its Financial Structure? Evidence from Microeconomic Data’, Rivista di Politica Economics, 95, pp. 269-290.

VI. Stewart, T.A., (1997). ‘Intellectual Capital: The New Wealth of Organizations’, Doubleday/Currency, New York.

Additional Files

Published

15-05-2017

How to Cite

Dr. Meetakshi Pant. (2017). MEASUREMENT OF INTELLECTUAL CAPITAL. International Education and Research Journal (IERJ), 3(5). Retrieved from http://ierj.in/journal/index.php/ierj/article/view/1051