UK Account Preparers' Perspectives on the Role of Intellectual Capital Reporting

Presented to the Global Accounting and Organisational Change Conference, 9-11 July 2008, Melbourne, Australia.

31 Pages Posted: 14 Mar 2009

See all articles by Jeffrey Unerman

Jeffrey Unerman

Lancaster University Management School, Dept of Accounting & Finance; University of London - School of Management

James Guthrie

Macquarie University - Department of Accounting and Finance; University Of Bologna - Department of Management; Macquarie University, Macquarie Business School

Date Written: July 9, 2008

Abstract

Purpose: Most prior research into intellectual capital reporting has examined disclosures in annual reports, but there has been little research ascertaining the views of preparers of accounts. This paper reports the results of an interview-based empirical investigation into the motivations of those preparing corporate reports in voluntarily reporting intellectual capital information in the UK.

Design/methodology/approach: This study has involved conducting and analysing interviews with one or more senior financial executives from each of a sample of 15 companies.

Findings: From the preparers' perspective, disclosure of intellectual capital information in the annual report had little, if any, new information content other than by exception. Reporting strategies actively incorporate the use of a variety of reporting media - not just the annual report. The annual report was considered to be one of the least effective media for reporting the complexities inherent in most intellectual capital value drivers. Face-to-face meetings with analysts were generally considered to be the most effective media.

Research limitations: The sample selection was based on the willingness of corporations to participate, meaning the selection was potentially biased. It is not possible to identify the organisations whose ICR practices have been studied because of confidentiality agreements with the interviewees. This places limits on the ability of other researchers to independently replicate the findings of this study.

Originality/value: ICR is a largely voluntary practice, and there has been little systematic research into ICR practices of UK companies, or of the factors motivating preparers in using different media to report on IC.

Keywords: Intellectual capital reporting, voluntary reporting, annual reports, reporting media, United Kingdom, preparers' motivation

JEL Classification: M4, M40, M41, M49

Suggested Citation

Unerman, Jeffrey and Guthrie, James, UK Account Preparers' Perspectives on the Role of Intellectual Capital Reporting (July 9, 2008). Presented to the Global Accounting and Organisational Change Conference, 9-11 July 2008, Melbourne, Australia., Available at SSRN: https://ssrn.com/abstract=1358762

Jeffrey Unerman

Lancaster University Management School, Dept of Accounting & Finance ( email )

Lancaster LA1 4YX
United Kingdom

HOME PAGE: http://https://www.lancaster.ac.uk/lums/people/jeffrey-unerman

University of London - School of Management ( email )

Egham
Surrey, Egham TW20 8DG
United Kingdom
0207-848-4237 (Phone)
0207-848-4237 (Fax)

James Guthrie (Contact Author)

Macquarie University - Department of Accounting and Finance ( email )

Sydney - NSW, 2109
Australia

University Of Bologna - Department of Management ( email )

P.Le Vittoria 15
Forli', 47121
Italy
+39-0543-374-621 (Phone)

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia