Measurement of intellectual capital code - Essay Example

Measurement of intellectual capital This paper does concern itself with an interview held with John who is an accounting lecturer with deep knowledge with regard to management account, hence in the best position to be interviewed. Present in the interview were the interviewee and the interview facilitator who was the interviewer. This paper does represent coded data for the interview record created. The information is coded put into a table to store the responses of the interview in a relevant, usable as well as accessible form.

Coding and putting the information in a table will represent the information in a manner that is well summarized.Table: Coded Record for Interview with John (John, 2014)Main codeSub codedescriptionIntellectual capital measurementFinancial focusNo financial valueHuman focusEnvironmental valueSocial valueUtility valueParameter/ strategyMeasurementEasily measurableHardly measurableAssets TangibleNon tangibleLiabilities Nonperforming employeesOld processes Expense Historical costsEmployee turnoverFinancial gapFinancial statementsCompany worthStructural capitalNon human capitalAcademic and practitioner differences General Figure: Main Code, Sub codes and Explanations Step 1: Intellectual capital measurement explanation There are no standards for its measurement.

It can be viewed from financial perspective. Different people measure different things when it comes to intellectual capital.Step 2: human factorIt is the human capital. Involves measurement of how staff works correctly. How one achieves the strategy.Step 3: strategyIt defines what one should measure. Some measure the easier things living out the hard ones. Other factors are almost impossible to measure.Step 4: assetsMeasurement of assets is divided in to two. That is measuring intangible assets and measuring tangible assets.

Step 5: liabilitiesMeasurement of liabilities involves measurement of nonperforming employees as well as old processes that need replacement.Step 6: expensesStake holders find it to be an expense when implementing a new system. Historical cost is important as it is true and shows true and fair view. Employee turnover is measured through number of employees and it is done differently from one organization to another.Step7: financial gapThere is always a financial gap between true value of assets and the amount at which a company is valued.

Step 8: structural capitalStructural capital is what there is without human capital.Step 9: problems between academic and practitioner in intellectual capital measurementMeasuring is only one thing. The aim is to achieve the same thing so it is not about managing or not managing. Bibliography Dumay, J., 2014. Interview with lecturer in accounting. [Interview] may (may 2014)