Time Capital and Intangible Accounting: New Approaches to Intellectual Capital

Time Capital and Intangible Accounting: New Approaches to Intellectual Capital

Ken Standfield (International Knowledge Certification Standards Board, Australia)
Copyright: © 2001 |Pages: 9
DOI: 10.4018/978-1-878289-98-8.ch018
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Abstract

“Because knowledge has become the single most important factor of production, managing intellectual assets has become the single most important task of business,” states Thomas Stewart in his ground-breaking book Intellectual Capital – The New Wealth of Organizations (Doubleday, 1997). As intellectual assets are the most important assets within any business, they must be measured and managed according to the most objective means possible. The development of Intangible Accounting and Time Capital represents a step in the direction of objective (strategy-independent) intellectual capital reporting where intangibles can be identified, managed and measured just as traditional assets are identified, measured and managed. The diagram below illustrates the relationships between various generations of intellectual capital measures. This chapter will explore third generation intellectual capital measures. Two technologies, iValuing and Intangible Accounting, are required to implement third generation intellectual capital measurement and management. The purpose of third generation intellectual capital reporting is to provide a standardized way to measure and manage intangibles within corporations. Intangibles include intangible assets, intangible liabilities, intangible revenue, intangible expenses and intangible capital. When people refer to intangible assets, they are frequently referring to various forms of intellectual property. The intangible accounting definition of “intangible assets” is much wider and includes reference to human interactions, knowledge, quality, cycle time and more.

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