Authors: P. Sundara Pandian
Addresses: V.H.N.S.N. College, Virudhunagar – 626 001, Tamilnadu, India
Abstract: Intellectual capital can be defined as the |combined intangible assets which enable the company to function|. Intellectual capital is currently valued at zero on the balance sheet. They include items such as the following: human brainpower; brand names; trademarks; assets booked at historical costs that have appreciated over time into something of much greater value. The value of an enterprise is the sum of its tangible assets and its intellectual capital. Intellectual capital broadly consists of human capital, structural capital and customer capital. Importance of measuring intellectual capital are: a) socio-economic significance; b) significance to the firm; c) improved internal understanding. In conclusion, the development of intellectual capital revolves around the mindsets of individuals working with or within the businesses. The traditional double-entry bookkeeping system does not reflect emerging realities regarding the formation and measurement of intellectual capital.
Keywords: human capital; structural capital; networking systems; customer capital; ICT; information technology; communications technology; combined assets; intangible assets; zero valuations; balance sheets; human brainpower; brand names; trademarks; historical costs; asset appreciation; enterprise value; tangible assets; socio-economics; significance; internal understanding; individual mindsets; double-entry bookkeeping; capital formation; capital measurement; learning; intellectual capital; business models; innovation.
International Journal of Learning and Intellectual Capital, 2011 Vol.8 No.3, pp.285 - 289
Published online: 30 Jun 2011 *Full-text access for editors Access for subscribers Purchase this article Comment on this article