Measuring intellectual capital: Intellectual Accounting Scorecard

Several indicators are constructed to measure intellectual capital at organisational level and at item level. The majority of models constructed so far have not established the link between individual intellectual items and organisational intellectual capital performance. The few models that establish such a link demand significant management time to monitor them or have established indices outside the traditional accounting system. The Intellectual Accounting Scorecard integrates intellectual capital measuring and reporting into mainstream traditional accounting reporting. Firstly it identifies each intellectual capital item as an intellectual revenue and intellectual expenses having an impact on the statement of income, or as an intellectual assets and intellectual liabilities having an impact on the balance sheet. Secondly, it constructs ratios to monitor operational and strategic performance.