Management of Intangible Assets

In a society marked by economic crisis, creating value and market competition becomes a heady company need. According to recent studies, in competitive companies, the highest share in the assets is hold by the value of intangible assets. Consequently, this involves the identification, measurement, management and efficient development of these inputs (knowledge, information, intellectual property, skilled labor, etc.). It is noted that, in the case of companies that have established management responsibility on intangible assets (intellectual capital), they recorded a value creation, superior financial performance and long- term development. In time intangible assets have become the most important sources of competitive advantage. This work aims to identify these resources in a company, presenting the most appropriate methods for economic evaluation and estimation of surplus value generated by efficient management.intangible asset management, value creation, competitive advantage, economic valuation of intangible assets, intellectual capital.

Maximizing Intellectual Property and Intangible Assets: Case Studies in Intangible Asset Finance

As innovative companies struggle to raise funds, intellectual property and intangible assets are providing alternative ways of financing innovation. But greater awareness of them as an asset class is needed. Raising that awareness is the focus of a new report from Athena Alliance, Maximizing Intellectual Property and Intangible Assets: Case Studies in Intangible Asset Finance by Ian Ellis, a former U.S. Department of Commerce official specializing in intellectual property and international trade. The report outlines increasing, but still nascent, means of financing innovation based on these assets in public, private and venture capital markets. As industry has invested capital in research and development to develop new technology and advance other creative activities, intellectual capital has become a valuable asset class, according to the paper. In response, firms specializing in intangible-based financing are springing up, using them to raise capital for the next round of innovation.The paper details equity, equity-debt, debt, and sale-leaseback transactions, both private and public, that have helped companies raise capital, based on careful, rigorous analysis and conservative underwriting standards. For example, the author notes that in 2000, there were two public deals using royalty securitization, raising $145 million. In 2007-08,$3.3 billion was raised in 19 deals.Unlike some of the exotic financial vehicles, however, the financial products discussed in this paper are some of the most basic financing mechanisms in business. The innovation is in recognizing the value of intangible assets for corporate finance. These new financial firms are using traditional financial techniques in new ways to help innovative companies.But more should be done.One important step would be developing sound, industry-wide, underwriting standards, according to the report. For example, Small Business Administration (SBA) rules permit its loans to be used for acquisition of intangible assets when buying on-going businesses. Rules are unclear on whether those assets can be used as collateral. The paper recommends that SBA work with commercial lenders to develop standards for using intangible assets as collateral.The report builds on earlier Athena Alliance papers, notably Intangible Asset Monetization: The Promise and the Reality

The Semantic Dynamics of the Intellectual Capital Concept

Intellectual capital is considered to be the most important source of wealth in the New Economy. Whether called intellectual capital, intangible assets, intangible resources, knowledge resources, it is increasingly getting more and more attention from both practitioners and researchers. For sound empirical approaches in this field, we first need to understand better what is meant by intellectual capital. This paper presents a complex analysis of the concept of intellectual capital.intellectual capital, intangible assets, knowledge, knowledge resources, knowledge assets.

Intellectual capital as a source of the competitive advantage

The main aim of the paper is to provide a synthesis of the new international framework of debate dedicated to intellectual capital. New economics and knowledge-based society focus on a portfolio of intangible assets to be managed. Intellectual capital is the essential root system of competitiveness, but is often invisible in the traditional accounting systems. The paper presents some examples of how to measure, report and monitor intellectual capital.intellectual capital; management of intellectual capital; new economics

Intellectual Capital in Public Sector

This study explores the way in which intellectual capital characteristics contribute towards a competitive advantage to public sector firms, particularly–State Owned Enterprises (SOEs) in Indonesia. The purpose of this study was to investigate the relationship between the intellectual capital and performance of public sector firms. Another purpose was to find out the difference of SOEs and non SOEs listed on Indonesian Stock Exchange regarding the effect of intellectual capital on financial performance The motivation based on the opinion that public sector in Indonesia had a bad performance compares to private sector. In government context human capital include competence, level of knowledge and integrity. Structural capital consist of culture and system or bureaucracy. Customer capital pertaining services to public. The sample consist of 36 firms were listed in Indonesia Stock Exchange, 18 SOEs and 18 non SOEs. Data were drawn for three years, 2010-2012. It was an empirical study using multiple regression model and independent sample t test for the data analysis. The paper tests elements of VAICTM and financial company\u27s performance. The findings show that: as partial, the components of intellectual capital (VAICTM), physical capital have a significantly influences to firms performance, but human capital and structural capital have no significantly influences to firms performance

INTELLECTUAL CAPITAL REPORTING AND DISCLOSURE IN THE ANNUAL REPORTS OF ROMANIAN MANUFACTURING LISTED COMPANIES â€" THEORETICAL FRAMEWORK

One of the most researched topic regarding financial reporting and disclosure of today is the way intellectual capital or knowledge assets contributes to the improving of the quality of information disclosed and create or add value to business performance. Also, it is acknowledged that a company has access to a variety of tools for disclosing information on intellectual capital. In our study we have decided to investigate the concept, the measurement models and the intellectual capital disclosure practices using as the source of our documentation books, articles, working papers and online publications. So, in the first part of our research we have presented several points of view in respect to the concept of knowledge assets or intellectual capital and in the second part we have reviewed the literature on the topic highlightening several scholars opinion on reporting and disclosure issues.knowledge, intellectual capital, reporting practices, disclosure, annual reports

Accounting intellectual property, intellectual capital and intangible assets

У статті досліджено проблеми бухгалтерського обліку інтелектуальної власності та елементів інтелектуального капіталу, а також питання подання інформації про інтелектуальний капітал у фінансовій звітності. Систематизовано підходи до визначення понять «інтелектуальна власність» та «інтелектуальний капітал». Досліджено поняття «інтелектуальна власність» з бухгалтерської (ресурсний та балансовий підхід) та юридичної (об'єктивний та суб'єктивний підхід) точок зору. Визначено, що у поняттях «інтелектуальна власність» та «інтелектуальний капітал» найчастіше робиться акцент на нематеріальності елементів. Розглянуто методику обліку людського капіталу як об'єкту інтелектуальної власності, моделі обліку людських ресурсів та підходи до оцінки їх вартості.В статье исследованы проблемы бухгалтерского учета интеллектуальной собственности и элементов интеллектуального капитала, вопросы представления информации об интеллектуальном капитале в финансовой отчетности. Систематизированы подходы к определению понятий «интеллектуальная собственность» и «интеллектуальный капитал». Исследовано понятие «интеллектуальная собственность» с бухгалтерской (ресурсный и балансовой подход) и юридической (объективный и субъективный подход) точек зрения. Определено, что в понятиях «интеллектуальная собственность» и «интеллектуальный капитал» чаще всего делается акцент на нематериальности элементов. Рассмотрена методика учета человеческого капитала как объекта интеллектуальной собственности, модели учета человеческих ресурсов и подходы к оценке их стоимости.In the article the problem of accounting items of intellectual property and intellectual capital and question submission of information on intellectual capital in the financial statements. Systematic approach to the definition of «intellectual property» and «intellectual capital». The concept «intellectual property» of accounting (balance sheet approach and resources) and legal (objective and subjective approach) points of view

Knowledge Capital, Intangible Assets, and Leverage: Evidence from U.S. Agricultural Biotechnology Firms

Agricultural biotechnology firms are high technology companies. Firms in general, and high technology firms in particular, are a set of both assets in place and growth opportunities. This has important implications for managerial decision-making. Knowledge capital motivates exploitation of growth options, which affects firm cash flow. In turn, the level and volatility of firm cash flow influences firm financing decisions. Previous studies suggest that knowledge capital can influence both the location and capital structure of firms in the biotechnology industry. However, empirical analysis has not extended to agricultural biotechnology firms. This research helps in understanding the role of knowledge capital and other intangible assets in capital structure decisions of U.S. agricultural biotechnology firms. Quantitative results indicate that leverage is negatively related to growth and nondebt tax shields. Asset tangibility, size, profitability, and uniqueness are positively related to leverage. Using various characterizations of leverage, our models explain up to approximately 75% of the variation in leverage. Empirically generated elasticities buttress the importance of intangible assets such as knowledge capital and tax shields in capital structure choice. This analysis adds a significant new component to understanding the financing decisions of agricultural biotechnology firms.Capital structure, Agricultural biotechnology, Knowledge capital, Intangible assets, Agribusiness,

How to Measure Intellectual Capital?

Converting knowledge or intellectual capital into long-term business value is, in practice, a far more difficult process than in theory. While developing and implementing knowledge or intellectual capital philosophy’s in management processes, companies experience difficulties in measuring the contribution of their intangibles to business results and, what is more critical, companies fail in their efforts to reproduce the conditions and the processes that have unlocked the value creation potential of their intangibles. The challenge for corporations in the coming years is to identify all the elements of their value creation cycle (their strategically important tangible and intangible resources) and how these must flow, interact and contribute to sustain the organic development of the organization and significantly enhance its value creation capabilities. Without a method and instruments to identify the inter-relationships and the conversion process between intangible assets – knowledge, competencies, partnerships – and all the situations and contexts to which they add value, performance measurement systems will not be able to reveal the true performance of a company or reveal the patterns of value creation. The concepts and methods that we will describe in this paper propose a critical and practical point in designing and implementing a performance measurement of intellectual capital.intellectual capital,intangible active,performance measurement system.