Management, Measurement and Disclosure of Intellectual Capital Information in Financial Statements: An Empirical Study of a Developing Economy

Dr. Madan Lal Bhasin
2016 Zenodo  
In the 21st century, economic growth will be driven by people leveraging their know‐how, innovation and reputation, surpassing the contributory role of capital, land and equipment. In today's knowledge-based economies, Intellectual Capital (IC), in addition to financial and physical capital, plays a significant role in the value creation process of organizations. It is argued that the success of many 21st century organizations will lie in their ability to unlock and exploit their IC to obtain
more » ... heir IC to obtain maximum organizational advantage. In an ever increasing competitive world, measurement, management and disclosure of IC are an important and useful means to keep investors well-informed. IC management is a wide process, which aims to utilize and develop the IC and maximize the outcome of IC of the firm. Currently, IC disclosure is not compulsory, and IC disclosure is done by select few companies, purely on voluntary basis. Unfortunately, IC measurement and disclosure in the developing economy are still at a very nascent stage, especially in India. This study attempts to provide an insight into the style of IC disclosure done by the Indian companies. It is said that "what is measured in companies is also what finally gets managed." Traditional accounting practices will need to assimilate innovations that seek to meaningfully represent the true value of the intangible assets of the company
doi:10.5281/zenodo.3466198 fatcat:csim2dclina23fr3iwrwwpq36u