19-09-2017, 10:27 AM
Intellectual capital is the intangible value of a business, covering its people (human capital), the value inherent to its relationships (Relational Capital) and all that remains when employees go home (Structural Capital) is only one component. It is the sum of everything that everyone in a business knows that gives it a competitive advantage. The term is used in academia in an attempt to account for the value of intangible assets not explicitly included in the company balance sheets. At the national level, intellectual capital refers to the domestic intangible capital IAS.
A second meaning used in academia and adopted in large corporations focuses on the recycling of knowledge through knowledge management and intellectual capital management (ICM). Creating, configuring and updating the stock of intellectual capital requires the formulation of a strategic vision that combines the three dimensions of intellectual capital within the organizational context through exploration and exploitation, measurement and disclosure. Intellectual capital is used in the context of assessment of the wealth of organizations. A metric for the value of intellectual capital is the amount by which the value of a company's business exceeds the value of its tangible assets (physical and financial). Directly visible in corporate books is capital incorporated into its physical assets and financial capital; however, all three constitute the value of a company. Measuring the real value and total return of the components of intellectual capital is a critical part of a company's management in the knowledge economy and the information age. Understanding intellectual capital in a company allows you to leverage your intellectual assets. For a corporation, the result will optimize its share price.
The International Financial Reporting Standards Committee (IFRS) developed the International Accounting System 38 for the purpose of prescribing the accounting treatment of intangible assets. IAS 38.8 defines an intangible asset as an identifiable non-monetary asset without a physical substance. An asset is a resource that is controlled by the entity as a result of past events (eg, purchase or self-creation) and from which future economic benefits (cash inflows or other benefits) are expected.
A second meaning used in academia and adopted in large corporations focuses on the recycling of knowledge through knowledge management and intellectual capital management (ICM). Creating, configuring and updating the stock of intellectual capital requires the formulation of a strategic vision that combines the three dimensions of intellectual capital within the organizational context through exploration and exploitation, measurement and disclosure. Intellectual capital is used in the context of assessment of the wealth of organizations. A metric for the value of intellectual capital is the amount by which the value of a company's business exceeds the value of its tangible assets (physical and financial). Directly visible in corporate books is capital incorporated into its physical assets and financial capital; however, all three constitute the value of a company. Measuring the real value and total return of the components of intellectual capital is a critical part of a company's management in the knowledge economy and the information age. Understanding intellectual capital in a company allows you to leverage your intellectual assets. For a corporation, the result will optimize its share price.
The International Financial Reporting Standards Committee (IFRS) developed the International Accounting System 38 for the purpose of prescribing the accounting treatment of intangible assets. IAS 38.8 defines an intangible asset as an identifiable non-monetary asset without a physical substance. An asset is a resource that is controlled by the entity as a result of past events (eg, purchase or self-creation) and from which future economic benefits (cash inflows or other benefits) are expected.