Intellectual Capital
Understanding corporate value: managing and reporting intellectual capital
Intellectual capital Contents
1 Introduction
4
2 Definitions of intellectual capital
6
2.1
2.2
Classifications of intellectual capital
Why is intellectual capital so difficult to measure?
3 IC measurement
8
Generic models
3.1
Balanced scorecard
3.2
Performance prism
3.3
Knowledge assets map approach
Individual company models
3.4
The Skandia navigator
3.5
Ericsson’s cockpit communicator
3.6
Celemi’s intangible assets monitor
3.7
Ramboll’s holistic company model
3.8
Bates Gruppen CompanyIQ measurement system
IC valuation
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
4 Knowledge management
4.1
4.2
19
Knowledge process wheel
Knowledge management and the accounting profession
5 Reporting intellectual capital
5.1
5.2
5.3
14
The value-added approach
The value creation index
Market or value-based approach
Tobin’s q
Calculated intangible value
Matching assets to earnings – the Baruch Lev method
Human resource accounting
Value-added intellectual capital coefficient
23
Accounting standards
Operating and financial review
Intellectual capital reports
6 Conclusion
26
Writers: Danka Starovic, project manager, technical issues, CIMA, and
Bernard Marr, research fellow in the Centre for Business Performance at
Cranfield School of Management
Production editor: Sarah Vaux
Designer: Adrian Taylor
Publisher: Chartered Institute of Management Accountants
Inquiries: technical.services@cimaglobal.com (tel: 020 8849 2275)
3
Intellectual capital
1 Introduction
Knowledge being the new engine of corporate development has become one of the great clichés of recent years, but there is no doubt that successful companies tend to be those that continually innovate, relying on new technologies and the skills and knowledge of their employees rather than assets such as plants or machinery.
Value can
Intellectual capital Contents
1 Introduction
4
2 Definitions of intellectual capital
6
2.1
2.2
Classifications of intellectual capital
Why is intellectual capital so difficult to measure?
3 IC measurement
8
Generic models
3.1
Balanced scorecard
3.2
Performance prism
3.3
Knowledge assets map approach
Individual company models
3.4
The Skandia navigator
3.5
Ericsson’s cockpit communicator
3.6
Celemi’s intangible assets monitor
3.7
Ramboll’s holistic company model
3.8
Bates Gruppen CompanyIQ measurement system
IC valuation
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
4 Knowledge management
4.1
4.2
19
Knowledge process wheel
Knowledge management and the accounting profession
5 Reporting intellectual capital
5.1
5.2
5.3
14
The value-added approach
The value creation index
Market or value-based approach
Tobin’s q
Calculated intangible value
Matching assets to earnings – the Baruch Lev method
Human resource accounting
Value-added intellectual capital coefficient
23
Accounting standards
Operating and financial review
Intellectual capital reports
6 Conclusion
26
Writers: Danka Starovic, project manager, technical issues, CIMA, and
Bernard Marr, research fellow in the Centre for Business Performance at
Cranfield School of Management
Production editor: Sarah Vaux
Designer: Adrian Taylor
Publisher: Chartered Institute of Management Accountants
Inquiries: technical.services@cimaglobal.com (tel: 020 8849 2275)
3
Intellectual capital
1 Introduction
Knowledge being the new engine of corporate development has become one of the great clichés of recent years, but there is no doubt that successful companies tend to be those that continually innovate, relying on new technologies and the skills and knowledge of their employees rather than assets such as plants or machinery.
Value can