Intellectual Capital Disclosures: Evidence from India
In the New Economy, Intellectual Capital(IC) can be recognized as an integral factor driving economic growth. Rapid globalization characterized by advances in technology, research & development and increasing competition has been essentially driven by growth in IC. But the current accounting framework do not provide for mandatory reporting of intellectual capital items in the annual financial statements in any country. There is limited disclosure of intellectual capital related items and whatever information is provided, it is based on voluntary disclosures only. At best, the only intangible assets that have found place in corporate financial statements are in the nature of intellectual property such as patents, trademarks and acquired items like goodwill. Tangible assets have failed to explain the increasing gap between market and book value of firms, this creates the need for more comprehensive disclosure practices taking into account the crucial contribution of intangible resources. Thus, the present study has been undertaken to study and analyze the intellectual capital disclosure practices of publicly listed firms in India in which can provide useful information on developing the intellectual capital base of the nation.
Keywords - Intellectual Capital, Intellectual Capital Disclosure, Intellectual Property, Human Capital, Content Analysis