scholarly journals Disclosure of intellectual capital in financial reports: case of Latvia

2019 ◽  
Vol 10 (2) ◽  
pp. 341-357
Author(s):  
Oksana Lentjushenkova ◽  
Vita Zarina ◽  
Jelena Titko
Keyword(s):  
Financial Reporting ◽  
Intellectual Capital ◽  
Value Added ◽  
Principal Component ◽  
Customer Relationships ◽  
Future Research ◽  
Quality Of Reporting ◽  
Financial Reports ◽  
Research Results ◽  
Reporting Practice

Research background: Intellectual capital and its elements, such as reputation, customer relationships, staff competence, are an essential part of a company’s value. However, the issues regarding its recording in company’s accounting books have not been solved. Proper disclosure of an intellectual capital in financial re-ports will increase the transparency of company-related information, thus improving the quality of reporting. Purpose of the article: The paper aims to investigate the opportunities of intellectual capital disclosure in company’s financial reports from the viewpoint of accounting experts. Methods: Financial and accounting managers, board members of accounting services, companies and auditors were surveyed, using the authors’ developed questionnaire. The statements regarding the awareness of the intellectual capital and its disclosure-related questions, as well as a respondent profile section were offered to respondents for evaluation. Data was processed in SPSS, applying the method of frequency analysis and categorical Principal Component Analysis (CATPCA). Findings & Value added: The research results indicate the problem of inconsistency between understanding of intellectual capital and its elements in management theory and accounting practice. The existing accounting standards and regulations do not allow for making a full disclosure of all companies’ assets. Thus, a reliable information about company’s value is not available for shareholders, executives and other stakeholders. The authors suggest using a non-financial reporting practice to reflect the real situation in all companies, irrespective to their status within the meaning of the European Directive on non-financial information disclosure. Current research results will be used for future research and elaboration of recommendations to companies for better disclosure of their assets. Besides, there is a potential for future studies regarding non-financial reporting practice and disclosure of intellectual capital in neighboring countries. 

scholarly journals Die staat van toegevoegde waarde as komponent van finansiele verslaggewing in die RSA

1991 ◽  
Vol 22 (3) ◽  
pp. 53-62
Author(s):  
A. P. Du Plessis ◽  
D. S. Joubert
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Value Added ◽  
Financial Statements ◽  
Financial Information ◽  
Financial Reports ◽  
A Value ◽  
Information Contents

The value added statement as component of financial reporting in the RSA The value added statement was developed due to a need for more understandable financial information for the uninformed user of financial statements. Although not required by the Companies Act, since 1977 numerous South African companies have included a value added statement in their financial reports. The question can, however, be asked whether the inclusion of a statement of value added in financial reports will not put financial information at the disposal of a larger group of existing and potential users of financial statements. In such a case the inclusion of the statement should be made compulsory and the contents be standardized. During a study of the reasons for the publication and the presentation of the information of this statement by South African companies, it was found that companies probably publish this statement for the annual competitions for financial statements. The information contents of the statement is therefore disregarded.

scholarly journals Analisis Penerapan Pajak Pertambahan Nilai pada PT Sarana Aspal Nusantara

2019 ◽  
Vol 7 (2) ◽  
pp. 290-300
Author(s):  
Hadi Sutomo
Keyword(s):  
Value Added ◽  
Analysis Data ◽  
Future Research ◽  
Value Added Tax ◽  
Research Results

This resecarh was conducted with the aim to find out whether the application of Value Added Tax to the company is in accordance with applicable tax regulations. The research was carried out by analyzing the collection, calculation, payment and reporting of Value Added Tax. The data sampel used in this research is the VAT Report at PT. Sarana Aspal Nusantara for the periode of 2016 – 2017. The results showed that the company had implemented Value Added Tax in accordance with the applicable tax provisions. However there was still Correction to the noficication letter or monthly VAT report, while   the occurrence of these corrections was due to several factors such as the replacement of tax invoice, cancelation of tax invoice, and other factors.  Therefore for future research the analysis data related to the application of Value Added Tax must be expanded and not only limited to VAT Notification Letter but also to all matters that have relevance to Value Added Tax so that the research results are expected to be more optimal

scholarly journals Relationship between Company's Intellectual Capital and Performance

Economics ◽  
2015 ◽  
pp. 728-746 ◽  
Author(s):  
Karam Pal Narwal ◽  
Sushila Soriya
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Intellectual Capital ◽  
Value Added ◽  
Regression Equation ◽  
Information Technology Industry ◽  
Technology Industry ◽  
Time Period ◽  
And Performance ◽  
The Relationship

This chapter examines the relationship between Financial Reporting of Intellectual Capital and Company's Performances in Indian Information Technology Industry. The sample consisted of 60 companies listed on NSE for a time period of 1999-00 to 2008-09. Value-Added Intellectual Coefficient (VAICTM) method developed by Pulic (1998) was used for the analysis of the data. The chapter uses VAICTM model and regression equation for the evaluation of intellectual capital and their relationship with productivity, profitability, and market valuation of the companies. The result of the chapter supports the hypothesis that profitability of the company can be explained by the intellectual capital. However, there is no significant association of intellectual capital with productivity and market capitalization of the companies for the selected time period of year 1999-00 to 2008-09.

scholarly journals Impact of Intellectual Capital on Earnings Management: Financial Statement Fraud In Indonesia

2021 ◽  
Vol 04 (06) ◽  
Author(s):  
I Made Laut Mertha Jaya ◽  
Keyword(s):  
Intellectual Capital ◽  
Value Added ◽  
Financial Statement ◽  
Test Model ◽  
Financial Statement Fraud ◽  
Financial Reports ◽  
Structural Capital ◽  
Capital Efficiency ◽  
Feasibility Test ◽  
Research Criteria

Many previous studies have interpreted the concept of intellectual capital based on one's values. However, if the company's management uses their intelligence intellectually to commit fraud by manipulating earnings in financial reports, this condition is certainly interesting to discuss further. This research method includes comparative quantitative. The research test applied descriptive statistics, normality test, multicollinearity test, t test, model feasibility test (F test) and multiple linear regresssscions. A total of 70 companies were in accordance with the research criteria during the 11 years of observation. Based on the numbers, the observations were made on 770 data. The results of this study concluded that intellectual capital as measured by using the value added method of intellectual capital (capital employed efficiency, human capital efficiency and structural capital efficiency) was proven to have a significant effect on earning management behavior or financial statement fraud in the company's financial statements.

Intellectual capital in action: evidence from Italian local governments

2016 ◽  
Vol 17 (4) ◽  
pp. 696-713 ◽  
Author(s):  
Francesca Manes Rossi ◽  
Francesca Citro ◽  
Marco Bisogno
Keyword(s):  
Intellectual Capital ◽  
Local Governments ◽  
Large Body ◽  
Principal Component ◽  
Future Research ◽  
Content Type ◽  
The Public ◽  
Structural Capital ◽  
Research Findings ◽  
Research Stream

Purpose Intellectual capital (IC) is attracting increasing attention from scholars and practitioners in the private sector, while research in the public sector is still in its embryonic stage, especially in regards to local governments. The purpose of this paper is to fill this gap by channelling conceptual and empirical findings from the large body of IC literature. Design/methodology/approach The research investigates IC in action in the local government domain. A survey has been carried out involving both managers and politicians of all Italian local governments (ILGs) with more than 40,000 inhabitants. In order to define the constituents of each IC dimension perceived by ILGs, principal component analysis was used in investigating the results. Findings Results highlights how IC components are perceived in ILGs: human capital is a combination of aptitudes in pursuing target performances, sense of ownership and motivations; relational capital is a combination of values, relationships and acts; structural capital includes procedures and routines supporting the decision-making process, the ability of achieving objectives and handling changes. Research limitations/implications While the research findings are limited due to being based on a survey in a single country, they present opportunities for future research regarding further testing of how IC is perceived in LGs in different context. The conclusion could be beneficial also for standard setters, providing a path to support the IC disclosure by LGs. Originality/value The paper contributes to a narrow strand of research – IC in LGs – adding new knowledge in “IC in action” research stream.

scholarly journals The impact of the intellectual capital components on firm’s performance in emerging markets

2021 ◽  
Vol 11 (2) ◽  
pp. 8-17
Author(s):  
Noomen Chaabane
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Value Added ◽  
Multiple Linear Regression Analysis ◽  
Future Research ◽  
Structural Capital ◽  
Stock Market Performance ◽  
The Impact

The objective of this research is to review, analyse, and provide empirical evidence about the impact of the intellectual capital (IC) characteristics on the firm performance on listed 26 companies in Tunisian Stock Exchange for the years 2010–2019. 260 companies were taken as a sample of this research using the purposive sampling method. The efficiency of intellectual capital was measured using the value added intellectual coefficient (VAIC) method developed by Pulic (2000). The research method used was multiple linear regression analysis. Our empirical analysis substantiates the fundamental role of IC components in improving the financial and stock market performance of listed Tunisian companies. The results obtained on the human capital efficiency variable contribute to improving the market of Tunisian listed companies and confirm the role attributed to human capital in the knowledge economy and even the basic hypothesis of the VAIC method. Investors do not place any importance on the following variables: structural capital, human capital and the efficiency of structural capital during market valuation. Future research is suggested to use cross-country companies as the sample.

scholarly journals Evolving of Selected Integrated Reporting Capitals among Listed Bahraini Banks

2018 ◽  
Vol 1 (1) ◽  
pp. 15-36
Author(s):  
Husain Alqallaf ◽  
Bahaaeddin Alareeni
Keyword(s):  
Financial Reporting ◽  
Intellectual Capital ◽  
Banking Sector ◽  
Annual Reports ◽  
Integrated Reporting ◽  
Financial Reports ◽  
Reporting Tool ◽  
Implementation Level ◽  
Statistical Variance ◽  
Corporate Financial Reporting

The main aim of this study is to identify the level of implementation of Integrated Reporting (IR) in Bahraini banking sector by measuring disclosure level in the banks’ annual reports. To achieve this, a sample of banking sector was analyzed, thereby evaluated the degree of implementation of this new corporate financial reporting tool through a checklist followed by previous studies. The study considered a sample of 12 listed banks in Bahrain Bourse. Banks financial reports were examined for the two years 2014 and 2015. The results show that, there is an average implementation level of IR 65.54% and 67.79% for the years 2014 and 2015, respectively. The result shows a slight increase in the implementation of IR from 2014 to 2015. This implementation level among banks in Bahrain is considered relatively average (medium). BBK took the top rank with a disclosure percentage of 70.27 % and 75.68 % in both years with a relatively small statistical variance in disclosure has been found between rest of the banks. The study further found that intellectual capital is the most disclosed panel that varied from 64.8% and 72.2% in 2014 and 2015 respectively.

scholarly journals Intellectual capital and market value: evidence from Jordan

2019 ◽  
Vol 16 (4) ◽  
pp. 37-45
Author(s):  
Mohammad Fawzi Shubita
Keyword(s):  
Intellectual Capital ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Physical Capital ◽  
Future Research ◽  
Industrial Firms ◽  
Structural Capital ◽  
The Impact ◽  
The Empirical Analysis

This research aims to apply the value-added intellectual coefficient (VAIC) model to test the impact of intellectual capital (IC) on market value of the Jordanian industrial firms. The research increases the awareness of the need for firms of all sizes to communicate and value their business beyond capturing numbers alone. The sample for this study is 73 Jordanian manufacturing shareholders companies during the period 2005–2017. The sample employed consists of 648 firm-year observations. Market value is measured using the market capitalization over the total assets. Valuation approaches are a challenging area created to enable the stakeholders, or outside parties, to put an economic value on a firm.The IC and its components: capital employed (CEE), structural capital (SCE), and human capital (HCE) of industrial firms have been analyzed, and their impact on market value has been estimated using regression models. The results show that there is no relationship between IC and the market value; HCE is associated with the market value, and SCE and CEE are not associated with the market value. This could be explained by the increase in employees’ training, as a regular training program is an essential factor in managers’ and employees’ performance. Practically, investors have a positive view of a firm that has higher employee expenditure than its investment in physical capital. Future research should be made on the empirical analysis of other sectors to determine whether different results and explanations can be obtained.

scholarly journals EU NON-FINANCIAL REPORTING RESEARCH – INSIGHTS, GAPS, PATTERNS AND FUTURE AGENDA

2020 ◽  
Vol 0 (0) ◽  
pp. 1-20
Author(s):  
Cristina Alexandrina Ştefănescu ◽  
Adriana Tiron-Tudor ◽  
Ecaterina Monica Moise
Keyword(s):  
Financial Reporting ◽  
Empirical Studies ◽  
Principal Component ◽  
Point Of View ◽  
Future Research ◽  
Future Research Agenda ◽  
Critical Issues ◽  
Fresh Perspective ◽  
And Cluster Analysis ◽  
Research Stream

This study approaches the fresh perspective of non-financial reporting (NFR) promoted through the Directive 2014/95/EU (EUD) by providing a state of knowledge, initiatives and approaches on this topic and also by identifying the main patterns developed within this research stream. Based on a structured literature review and statistical methods as Principal Component and cluster analysis, it investigates the progress of scientific research and design undertaken within NFR topic and discloses insights and critical issues for future research agenda. The results reveal the focus of the literature on general issues related to EUD, as well as throughout its specific requirements, using GRI or other national/international frameworks. From a methodological point of view, even though empirical studies prevailed, there are also conceptual studies that analyse the new EUD either on sampled countries or across Europe.

scholarly journals Sustainable development of Russian companies participating in United Nations Global Compact

2021 ◽  
Vol 129 ◽  
pp. 08002
Author(s):  
Konstantin Belousov
Keyword(s):  
Sustainable Development ◽  
United Nations ◽  
Financial Reporting ◽  
Value Added ◽  
United Nations Global Compact ◽  
Bottom Line ◽  
Global Compact ◽  
Financial Reports ◽  
Preferred Direction ◽  
Social Environmental

Research background: This article presents the results of a study of non-financial reporting in the field of sustainable development of Russian companies within the United Nations Global Compact initiative. Purpose of the article: The purpose of this study is to identify preferred direction of companies. We put their reports on sustainable development in Triple bottom line (TBL) areas: social, environmental and economic. In this article I also disclose conceptual foundations of sustainable development, which served as theoretical and methodological basis of the study. Methods: Analysis of the companies activities in the field of sustainable development, the results of which are reflected in corporate reports on sustainable development for 2018, 2019, 2020, which passed the non-financial audit procedures of the Russian Union of Industrialists and Entrepreneurs and are published in the reports register. Findings & Value added: The study made it possible to identify companies through the positioning of their reports on sustainable development. The study confirmed the hypothesis that non-financial reports on sustainable development are social in nature, focusing on the interests of staff and consumers, while environmental and economic aspects are given less importance. The articles also disproves the hypothesis, that the direction of the company has a significant impact on the positioning of the company. In the course of the study, it became possible to assess the companies’ support for the Global Compact initiatives.

Sign in / Sign up

Export Citation Format

Share Document