A review of intellectual capital measurement and reporting

Abstract

The emergence of the "new economy," which is primarily propelled by knowledge and information, global competition, and evolving interpersonal activity patterns, is ascribed to the growing significance of intellectual capital (IC) as a management and research area. The claim that information and communication (IC) will play a significant role in determining enterprise value and the health of the national economy in the twenty-first century is, in fact, well supported. The drive to create new measures that can be used to track and report the value attributed to knowledge within an organization stems from this realization of the importance of know-how. The process has been accelerated by the fact that early research on intangible assets and the application of non-financial measures has been found in the accounting financial reports of Swedish enterprises. This is a major divergence from conventional wisdom in management and finance accounting.