Management Theory and Studies for Rural Business and Infrastructure Development, Volume 35, Number 4

The essence of intellectual capital in economics and accounting

Ivan Derun


At the present stage of economic relations a significant impact on development of global economic system has the emergence of a new driving force for civilization, which is information accumulated in the form of knowledge. That is why today the efficiency of the world economy becomes more dependent on high-tech production development, volume of intellectual capital and level of investments in it. The paper examines the essence and classification of intellectual capital in terms of economics and accounting. The aim of the study is to determine the economic and accounting nature of intellectual capital as a part of company’s non-current assets. The basis for the harmonization of IAS 38 is proposed to use the capitalization of R&D costs and HR costs with the implementation of additional conditions that would reduce the distortion of information on intangible assets and non-current assets as a whole in the financial statements, as these costs by economic nature are investments in long-term assets. The article carries out the need to provide information about intellectual capital in the notes to the financial statements using qualitative and quantitative indicators, which could enhance the image of the company and its financial position in the future.

JEL Codes: M41, M20.

Keyword(s): intangible assets, intellectual capital, invisible assets, non-current asset

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.