Intellectual Capital: Current Issues and Policy Implications

Journal of Intellectual Capital 1(3): 206-240 (2000)

Posted: 30 May 2013

See all articles by Niamh M. Brennan

Niamh M. Brennan

University College Dublin

Brenda Connell

Ernst & Young LLP

Date Written: 2000

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 paper. Prior research concerning intellectual capital is next 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: Intangible assets, intellectual capital

JEL Classification: M41

Suggested Citation

Brennan, Niamh M. and Connell, Brenda, Intellectual Capital: Current Issues and Policy Implications (2000). Journal of Intellectual Capital 1(3): 206-240 (2000), Available at SSRN: https://ssrn.com/abstract=2257491

Niamh M. Brennan (Contact Author)

University College Dublin ( email )

Brenda Connell

Ernst & Young LLP ( email )

One MOre London Place
1225 Connecticut Ave NW # 700
New York, NY SE1 2AF
United States

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