Intellectual Capital in Business

Winning the Knowledge Game  June 11, 2010 – 03:12 am
b1 Definition Of Intellectual

Rylatt, A 1957, Winning the knowledge game, A smarter strategy for better business in Australia & New Zealand, pp. 215-224

Synopsis:

Measuring your know how is an article to change the sight of measuring  business assets to a new direction where only tangible asset is are only measure point of calculating the profit of an organization. Today traditional accounting methods fail to measure the real impact of people on the success of a business. Now we are seeing a dramatic shift in how worth is being judged. This is the time when intangible assets values a lot in market and the article gives us many examples of like IBM, oracle, Coco cola , Kellogg etc. further it describes the measure which guides us to calculate the assets for the company now the balance sheet is not the only aspect of knowing the company status in the market.

Now the question arise is how to measure such intangible assets or intellectual capital in business such as good will or market performance etc, so further the article have given us the methods that how it can be calculated and what are the criteria’s defined by the Financial Accounting Standards Board (FASB) in the US that measures of intangible values for an company. According to me In the next decade the reporting of so-called intangible assets will dramatically change the accounting landscape. For the first time investors and the public would have a greater opportunity to place a better measure on the true value and future of an enterprise.

Source: Suj28's Blog

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