Revisiting Accounting in the Knowledge-Based Economy

Abstract

The purpose of this paper attempts to give an explanation of why accounting bodies are hesitant to embrace new intellectual capital valuation and reporting models that have sprung up in the last decade, in spite of the fact that accounting standards are generally ill-suited to cater for intangibles. Despite some resistance, this paper highlights the commendable efforts of those pushing for change, and even offers recommendations to standard setters and accountants at large as to the way forward in approaching the complex dynamics involving the measurement of intellectual capital. The information of the research project was gathered from various secondary sources of data. The sources range from: industry trade journals; practitioner accounting journals; and academic publications, to give both practical and theoretical views on the subject matter. A comparison will first be made that looks into the limitations of existing financial models and the subsequent implications of ignoring IC in financial statements versus the significance of accounting for IC. The second part entails comparing IC valuation techniques using conventional reporting standards against proposed new reporting methodologies. From this discussion, a conclusion will be drawn which will include a proposition of a way forward in addressing IC.

Strategic Knowledge Management, Innovation and Performance: A Qualitative Study of the Footwear Industry

“…Ours is a knowledge society in which a 'knowledge-based economy' plays a crucial role. This role is nowhere more prominent than at the organisational level (Velmurugan 2010) and, above all, in organisations operating in global contexts, such as business enterprises. Indeed, knowledge has become the key competitive advantage of any organisation.…”

Gestión del conocimiento y políticas de innovación

“…El capital humano marca una ventaja competitiva de primer orden (Velmurugan, 2010). Las empresas que invierten sosteniblemente en capital humano tienden a obtener una mayor rentabilidad y capacidad de adaptación.…”

“…Estos activos han crecido en importancia al aportar un valor agregado significativo para las empresas y crear mercados autónomos, como las subastas de patentes (Fischer y Leidinger, 2014). Esto ha llevado a que existan nuevas herramientas de medición de los activos de conocimiento que permiten cuantificar el valor económico agregado que aportan a las organizaciones, aunque siguen existiendo retos para reportar y medir de manera eficaz, transparente y confiable el valor de estos bienes intangibles (Velmurugan, 2010). Un asunto mucho más complicado e importante en una perspectiva del largo alcance en las organizaciones es cómo evaluar y medir el capital humano.…”

Opinion of Serbian students regarding knowledge economy

“…This leads towards high demand for productive, efficient and innovative workers and further results in the increase in importance of knowledge. It has gone a long way for knowledge as being one of the most important factors of production according to Drucker to become a primary competitive factor of businesses as Velmurugan stated [4], [22].…”