Towards Identifying and Disclosing Intellectual Capital

International Journal of Business and Social Research, Vol 4, No 3, March 2014

8 Pages Posted: 31 Mar 2014 Last revised: 1 Apr 2014

See all articles by Gholamreza Karami

Gholamreza Karami

University of Tehran - School of Accounting

Jalal Seyyedi

University of Tehran

Mohammad Sadegh Ghaznavi

University of Tehran - School of Accounting

Date Written: March 30, 2014

Abstract

Intellectual capital (IC) is one of the most valuable assets of firms, which has a significant role in success and wealth creation of the entities. Although these assets do not meet recognition criteria of accounting standards and are not reflected in financial statements, but they exist and the evidence indicates that they can affect managers, investors and other stakeholders’ decisions. It is expected that companies have incentives voluntarily report information about IC, due to the benefits thereof. Moreover because of the latest changes in the conceptual framework, we can expect acceleration in the movement towards recognition, measurement and disclosure of IC. In this article first we present the definition and the most important elements of IC, and then different ways of measuring this asset in accounting will be discussed. In rest of the paper incentives for disclosing IC will be presented, in order that the attention of the standard setters is attracted to the latest developments in this field and also the attention of investors becomes focused on this important asset of companies.

Keywords: Intellectual Capital (IC); Measurement of IC; Disclosure of IC; Incentive of Disclosure.

JEL Classification: M41

Suggested Citation

Karami, Gholamreza and Seyyedi, Jalal and Ghaznavi, Mohammad Sadegh, Towards Identifying and Disclosing Intellectual Capital (March 30, 2014). International Journal of Business and Social Research, Vol 4, No 3, March 2014, Available at SSRN: https://ssrn.com/abstract=2417869

Gholamreza Karami

University of Tehran - School of Accounting ( email )

Al-e-Ahmad Ave.
Tehran
Iran

Jalal Seyyedi (Contact Author)

University of Tehran ( email )

No.1 , North Didar St. , Haghani Hwy. , Tehran , I
Tehran, Tehran 5433174616
Iran
00989124372736 (Phone)

Mohammad Sadegh Ghaznavi

University of Tehran - School of Accounting ( email )

Al-e-Ahmad Ave.
Tehran
Iran

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