Intellectual Capital Reporting: Challenge Of The Knowledge Economy
In the current dynamically changing discontinuous economy, there is an increasing need for new measures to guide future actions of business models developed to anticipate the surprise. Accordingly, researches on Intellectual Capital measurement and reporting continue gathering interest of corporate sectors. Although conglomerates have started applications of new methods, the challenge to integrate results with the generally accepted accounting systems continues. The key argument of this article is that most current methods of Intellectual Capital measurement are pertinent to the industrial world of the current era. The discussion surfaces the key strengths and weaknesses of the applied methods and how they need to be afresh given the changing assumptions about business strategy and competitive business environment. Based on this discussion a new perspective is proposed for the ever growing distribution companies. For the purpose of this article, the focus of discussion is on measurement rather than reporting. However, most of the arguments, observations and results obtained from a pilot study are relevant to both academics and practitioners in the accounting field.