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Intellectual Capital Reporting in Knowledge Economy
The Relevance of Corporate Governance
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119 b
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The twenty-first century is a century of the knowledge economy, where large investments are directed to intellectual assets rather than physical assets. Intellectual capital reporting is a new powerful instrument in the knowledge domain, which serves as a management and communication instrument and delivers information for investment decisions. The crash of the dot com companies and the debacle of Enron and World Com have refocused the discussion on intellectual capital and its indispensability in corporate governance. This book discusses comprehensive measurement models and reporting of intellectual capital and investigates the governance drivers that might impact the voluntary intellectual capital disclosures. As a manager, investor, accountant, auditor, standards setter and policy maker, you will realize the role played by corporate governance in enhancing information disclosed on intellectual capital, which in turn emphasizes the need for more effective corporate governance mechanisms that provide greater maintaining of financial accounting processes to ensure integrity of financial reporting.
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