The Role Of Intellectual Capital Information On The Narrative Sections Of Corporate Annual Reports

With the ever increasing pace of change in the world, today’s market leader can be out of business tomorrow if the organisation fails to adapt to the changes around it. One of the key assets of each organisation is its human capital, i.e. the knowledge, skills and abilities of its staff. If the organisation is to adapt,

Each company must prepare financial statements to provide a comprehensive picture about its past performance and situation for the owners, the managers, the state and other stakeholders as well. In the case of enormous, international public limited companies like Ford and Microsoft these statements and data are public, so anybody can reach them through the internet. Moreover, we can also compute a lot of financial ratios based on these data. If we want to get an authentic frame about the firms, we have to know what these statement and ratios mean. In addition, it’s difficult for the companies that they want to give other picture about their financial status to

Human capital, structural capital, and relational capital are valuable elements of Intellectual Capital, nonetheless, we primarily focus on improving the innovation process and the intangible assets. Our knowledge capabilities are essential success utilities that propel the collaboration and motivation among employees. In concordance to the OKCA article, intellectual capital is especially needed for innovative technology enterprises, which is relevant since the organization itself is a segment of a larger enterprise network renown as the Pasco Enterprise Network or the Pasco Economic Development Council. Our intellectual capital audit further helps track and trace the records and strategy execution that are interconnected to (1) patents, (2)

The strategic use of human resources is essential for all organisations that have objectives involving growth and stability. Therefore, it is essential for companies to closely examine their practices regarding their human capital to ensure a successful working environment. A selection of the major strategies and topics involving human capital are illustrated in the following report. Crackberry Communications should use this information to analyse potential risks and opportunities their human resource managers face.

Human Resources constitute as one of the most imperative components of any organization, be it small scale business or a large conglomerate. Some of the key functions of the Human

Though classic and modern economic thinking have significant difference in theory and concept of human capital, they still have the same methodology. They set out with the same goal, in example, trying to explain the secrets of success (and failure) of a nation: why and how a nation managed to reach economic growth and generates prosperity. The methodological basis, either in classic or modern economic thinking, believes that the concept of human capital is only sensible and has a practical implication if understood in the whole framework. For that reason, it is very interesting to see the significance and meaning of the concept of human capital in the global context.

The article discusses that in 1976 the U.S. Supreme Court ruled in one case that omitted financial statement information altering a reasonable investor’s decision proves the material nature of the information. The article continues by describing that lower courts earlier ruled that all financial information whether material or not must have full disclosure in a company’s financial statements. The rejection of the lower courts’ ruling by the U.S. Supreme Court gives the investor the ability to focus on the aspects of the financial statements that are most important by allowing the elimination of minute details (Sauer 2007, 317-357). In essence, this ruling allows for the elimination of financial information below the determined materiality threshold unless otherwise required by the ruling of a regulatory body.

Moreover, information in the free market is meaningful which enhances investors’ understandability of the market thus creates an efficient financial reporting. Trading accounting information as a commodity, the most common incentive of free market reporting is to offer information which assists the investors to evaluate the firms’ operating earnings (Asher, Sarah and Benjamin, 2011). Finally, the free market possess a great magnitude of information. Even if the disclosures in a free market is voluntary, it contains a large scope of information which benefits the decision makers. Lang and Lundholm (1996) indicated that companies with supplementary information disclosures predict future earnings more accurately. Under the non-GAAP metrics in free market, another benefit is high relevance of information. In the unregulated environment, the value of information is more relevant as price and earnings are highly related (Albring et al. 2010). Even though the analysts failed to predict the occurrence of global financial crisis (GFC), the quick spread of bad events offers valuable information to the users and enables the participants to anticipate future risks which helps the vulnerable market recover in a high speed (Wilson, 2011).

The income statement, balance sheet and statement of cash flow are the biggest financial statements released by all publicly traded corporations; within different market sectors there are other standard forms that are released as well. These statements allow investors and potential investors a great deal of insight into the specifics of the business rather than just having to take someone’s word at a press conference on how it is functioning.

108 1997; Mouritsen, 1998; Allee, 2000; Marr et al. , 2003) and various research projects have been made to explore other related details of this subject such as ' Measuring and reporting intangibles to understand and improve innovation management ' (Meritum) then E*KNOW-NET (Petty and Guthrie, 2000), which are supported by the European Commission. The importance of intellectual capital is emphasised in the revolution in information technology and the information society, the rising importance of

People are the key to business success. However nowadays of business this is often neglected and people are seen to be a necessary expense. A successful business does not just rely on a person’s power instead it involves continuous effective teamwork and communication. Storey (1995) defines that human resource management is an individual approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

The report of the general purpose of financial reporting outlines an importance of ensuring about what companies disclosure on the PP&E in the report in regards to the qualitative characteristics of useful financial information by the general purpose financial reporting. The report investigates how this company meets the disclosures requirements for PP&E as per AASB116 as well as what extents the disclosures on the PP&E contain the fundamental and enhancing qualitative characteristics of useful

Abstract: It is well known that knowledge economy is mainly based on intellectual capital. Intellectual capital plays a key role in enterprise’s value promotion. In fact, the good intellectual capital control system can bring the positive influence to the enterprise achievements. It is important to make empirical research on the relationship between intellectual capital and company performance to create value and enhance the enterprise achievements.

6. Often we expect to observe less voluntary disclosure by companies in emerging market countries than by those in developed countries:

Intellectual capital has attracted considerable interest from both academics and practitioners. Research in this area has highlighted the importance of intellectual capital in generating and sustaining organizational competitive advantage (Bontis, 2000;); is generally conceptualized as “intellectual material - knowledge, information, experience, core technique, intellectual property, and customer relationship that can be put to use to create wealth” (Stewart, 1997); a knowledge-based economy, characterized by a rapid expansion of knowledge-intensive industries creating and exploiting knowledge and information in all sectors of the economy (Nonaka and Takeuchi, 1995).