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Intellectual capital: current issues and policy implications

Niamh Brennan (University College Dublin, Dublin, Ireland, and)
Brenda Connell (Ernst & Young, Dublin, Ireland)

Journal of Intellectual Capital

ISSN: 1469-1930

Article publication date: 1 September 2000

10849

Abstract

Substantial differences between company book values and market values indicate the presence of assets not recognised and measured in company balance‐sheets. Intellectual capital assets account for a substantial proportion of this discrepancy. At present, companies are not required to report on intellectual capital assets, which leaves the traditional accounting system ineffective for measuring the true impact of such intangibles. Regulations currently in place are analysed in this article. Prior research concerning intellectual capital is presented. Frameworks for intellectual capital are compared. Indicators used for the measurement of intellectual capital are examined. The research methodologies employed for collecting information about the use of intellectual capital accounts in companies are reviewed. Guidelines available to companies for reporting on intellectual capital are considered and also the efforts made towards developing an accounting standard for intellectual capital. Finally, current issues and policy implications of accounting for intellectual capital in the future are examined.

Keywords

Citation

Brennan, N. and Connell, B. (2000), "Intellectual capital: current issues and policy implications", Journal of Intellectual Capital, Vol. 1 No. 3, pp. 206-240. https://doi.org/10.1108/14691930010350792

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited

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