A review of guidelines and frameworks on external reporting of intellectual capital

With a view to enabling organisations provide a clear understanding of firm value creation, several national and supranational institutions have produced guidelines and frameworks for externally reporting intellectual capital (IC). In many cases regulators, the accounting profession and accounting scholars have driven these initiatives. The purpose of this paper is to summarise, analyse and compare the guidelines and frameworks that have been developed with a focus on externally reporting IC.

The paper analyses the assumptions underpinning 20 guidelines and frameworks that have been developed with a focus on reporting IC using a self-constructed framework.

The review resulted in a comparison of IC reporting guidelines and framework based on target audience, role of IC within the organisational strategic management process and reporting IC indicator. It provides an understanding of the state of the art in relation to external reporting of IC.

The insights provided by the comparison of the guidelines and frameworks are likely to be helpful for practitioners wanting to adopt or develop an IC reporting model for their organisation. Policy-makers will find these insights beneficial when attempting to refine existing frameworks and guidelines for reporting IC and in developing new ones to suit various circumstances. Also, this paper provides a useful review for academics.

This is the first paper to provide a review of a large number of business reporting guidelines and frameworks with a focus on IC. It is a valuable reference for practitioners, policy-makers and academics on IC reporting models.