Measurement of intellectual capital - Essay Example

MEASUREMENT OF INTELLECTUAL CAPITAL This paper is concerned with the d regarding an interview held with john, an accounting lecturer who has full knowledge in management accounting. The lecturer was in a best position for the interview. The paper is a graphical representation of the relationship of the coded data of the interview. The graphical representation presents the data in a comprehensive manner explaining the relationship as well as connections between categories. Graphical representation of code relationship in the john interview- (2014) Figure: Main code, Sub codes and Relationships Intellectual capital is the overall or main category and many subcategories that is related to.

Its measurement is difficult due to lack of standards. The two main branches are the financial focus and human focus. There are measurement difficulties due to lack of measurement standards in these focuses. Some factors are easily measurable while others are difficult. The relationship of the financial gap between the business assets and the value of the business is difficult to understand because its measurement lacks standard. Expenses in process change relate to employees and historical costs.

Structural capital relates to non human capital in the company. Standards need to be established for measurement of assets especially the intangible ones and also things like depreciation. There lacks standards for measurement of liabilities like non performing employees. BibliographyDumay, J., 2014. Coded Data for Interview with lecturer in accounting. [Interview] may (may 2014)