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Intellectual Capital Reporting Accounting of The New Millennium
Authors: Dr. Neetu Prakas
Number of views: 309
The concept of intellectual capital is becoming popular at global level in recent era. Various
forward-looking companies have started measuring and Intellectual capital of a firm is, its
possession of knowledge, applied experience, organizational technology, customer
relationships and professional skills that provides it with a competitive edge in the market. It
is the intellectual material - knowledge, information, intellectual property and experience
that can be put to use to create wealth. Intellectual capital is nothing, but the combined
intangible assets that enables a company to function in a passionate way and simply we can
call it as "packaged useful information". If these intangible resources, such as knowledge as
well as professional skills of the employees, organizational technology, research and
development are not properly identified and utilized, it may cause to the failure of the
business. The importance of financial assets in the determination of a company's market
value is decreasing fast, and it is equally recognized that non-financial (or intangible) assets
are now the main drivers of performance and market value.