The purpose of this paper is to emphasize the importance of intellectual capital (IC) undisclosed on the assets side on the balance sheet of knowledge enterprises. This capital is very relevant, and mana-gers need to have information about it in order to facilitate effective IC management process. The issue of IC performance measurement has been a matter of growing importance in both academic community and managerial practices for the past two decades. Based on the previous ideas put forward in the literature of knowledge management and IC management, this paper suggests a new methodological framework for overcoming the problem of IC performance measurement in knowledge enterprises. Efficiency of Intellectual Capital (EIC) methodological framework offers practical solutions for measuring the efficiency of total enterprises' IC, as well as the efficiency in the use of all IC components. The EIC framework connects financial accounting valuation and market valuation.
Cloud technology, as an innovative way of data processing and storage, is one of the latest trends in the world of information technology. Adopting these technological solutions is one of the primary ways to ensure the efficiency of the accounting information system, so today the focus is more and more on cloud accounting, or, how it can often be heard, online accounting, web accounting, or virtual accounting system. The aim of this paper is to point to specific features of applying cloud technology in accounting-opportunities it provides, as well as risks arising from it. In addition, by presenting the benefits that cloud-based accounting brings to companies implementing this technology as well as users of financial information, the authors aim to encourage and stimulate companies in the Republic of Serbia to use the growing cloud services market and introduce this technology into their accounting information systems.
This paper aims to emphasize the quantification of intellectual capital, not disclosed on the assets side of the balance sheet in the smart and knowledge-based enterprise, because it is very important for the more precise quantification of the profitability ratio, such as the return on assets (ROA). For this purpose, the paper suggests the EIC (efficiency of intellectual capital) methodology. It points out the necessity for the new profitability formula, gives methodological solutions for it, and investigates the impacts of intellectual capital (IC) efficiency indicators on traditional and new formulas of profitability in the case of knowledge-intensive and smart companies. The research confirms the importance of improving the profitability measurement in the knowledge economy era, where exists the dominance of intangible assets. It emphasizes the need for the correction of the denominator of the traditional ROA indicator. The comprehensive measurement of the total intellectual capital, especially its non-disclosed component in the balance sheet, provides information for more precise and accurate profitability measurements. The paper points out the issue of improving the traditional financial ratio, such as the ROA. This can be achieved by incorporating the value of intellectual resources, which are undisclosed in the balance sheet, in its denominator. This solution results in creating a new profitability indicator—return on total employed resources (EOR). This EOR indicator is more successful in capturing the enterprise’s intellectual performance compared with traditional profitability ROA indicators. This fact leads to the conclusion that EOR is better profitability indicator especially for smart and knowledge-intensive companies.
Decision trees made by visualizing the decision-making process solve a problem that requires more successive decisions to be made. They are also used for classification and to solve problems usually addressed by regression analysis. One of the problems of classification that arises is the proper classification of bankrupt companies and non-bankruptcy companies, which is then used to predict the likelihood of bankruptcy. The paper uses a random forests decision tree to predict bankruptcy of companies in the Republic of Serbia. The research results show the high predictive power of the model with as much as 98% average prediction accuracy, and it is recommended for auditors, investors, financial institutions and other stakeholders to predict bankruptcy of companies in Republic of Serbia.
Investors have become the most important users of financial statements in modern business conditions, and mixed base of financial reporting has been established in order to meet their information needs and it includes elements of the concept of historical cost and the fair value concept, with an increasing shift towards the fair value concept. The primary task of fair value accounting becomes the expression of the fair value of the net assets at the reporting date, while the financial results represent the change in fair value of net assets between the two reporting periods. In our country the application of the "full IFRS" is mandatory for large enterprises and the application of IFRS for SMEs is mandatory for small and medium-sized entities, thus fair value accounting becomes an integral part of the financial statements of domestic companies. However, fair value accounting is not a suitable concept for our country characterized by shallow and underdeveloped financial market, companies whose owners are the company managers at the same time, and low level of economic and technological development. A financial statement audit in terms of the use of the fair value concept becomes much more demanding and complex than the audit of the financial statements based on historical cost accounting.
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