Definitions, Categorization, Measurement and Reporting of Intellectual Capital: A Review
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Abstract
In this Economic Knowledge era, the factors that create firm value are not tangible assets, but intellectual capital. According to the problem of preparation and presentation of financial statements, intellectual capital cannot be presented in the statement of financial position. This article presents a review of the literature on intellectual capital, starting from evolution, definitions of intellectual capital that is diverse but has the same common elements, the composition of intellectual capital, how to measure the value of intellectual capital that is divided by characteristics of the same data and methods, including the disclosure of information about intellectual capital that enables managers to understand and exploit the benefits of intellectual capital in terms of increasing overall firm value. The final part of this article provides suggestions for future research, in order to provide empirical evidence about whether intellectual capital is useful for creating a true competitive advantage.
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