The Importance of Intellectual Capital’s Measurement

Document Type : Review Paper

Authors

1 Professor of Accounting, Al-Zahra University

2 Member of the faculty of Khalkhal Islamic Azad University, Ph.D. student of Kermanshah Science Research Branch

Abstract

Today the intellectual capital and intangible assets are the key factors in company’s profitability and success but the accounting profession has not met the challenge of measuring and reporting the results of knowledge-based entities. The problems relating to the measurement and reporting of intellectual capitals are international in scope, because intellectual capital is intangible and cannot be accurately measured but companies must measure intellectual capital with the goal of increasing shareholder value. The interest in managing intangible assets result in developing of different methods of measuring IC. Many researchers have shown that in developed countries, Effective management of intellectual capital is directly related to organizational success.According to Intellectual Capital Theory, the main function of intellectual capital is producing and delivering of value added services by actively management of intangible assets that a positive impact on organizational performance. In this article, at first the concept of intellectual capital will be explained and finally, the importance of intellectual capital and measurement models of it, will be referred. 

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References

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History

  • Receive Date: 29 December 2014
  • Revise Date: 11 December 2015
  • Accept Date: 20 February 2016

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