An Opinion Survey Analysis of Valuation of Intellectual Capital for Integrated Reporting

Abstract

Financial reporting and risk are important aspects of corporate reporting. However, high-quality decision-making can only be possible when additional information is available. IR has developed from the growing realization that traditional financial reporting provides insufficient information for integrated thinking and investment decision-making. As a result, the international integrated reporting council (IIRC) was formed. In December 2013, the IIRC released the first version of its IR Framework to be used as guidance for voluntary adoption of IR. Here an attempt has been made to critically examine the available methods and models for valuation of intellectual capital for the purpose of integrated reporting and to analyze opinion survey of professionals and academicians about ranking of the existing models for valuation of intellectual capital and prevailing accounting standards relating to intangible assets. For analysis of data 5 point Likert Scale of measurement statistical technique is used. Opinion survey result shows that respondents identified Balance Scorecard model as best model for measurement of Intellectual Capital followed by Intellectual Capital index model. Both academicians and Chartered Accountants respondents are fully agreed on the issue to review and modify accounting standards by regulatory bodies from time to time to incorporate recent development made in the field of intangibles. The research is both quantitative and descriptive in nature and mainly uses primary data obtained from survey of 60 respondents.