Please use this identifier to cite or link to this item:

TitleThe measurement and financial reporting of intellectual capital by portuguese listed companies
Author(s)Rodrigues, Lúcia Lima
Oliveira, Lídia
KeywordsFinancial Reporting
Intellectual Capital
Issue dateNov-2002
PublisherUniversidade do minho. Núcleo de Estudos em Gestão (NEGE)
Abstract(s)Conventional financial statements fail to recognise many intangible assets (such as human resources and customer relationships). As a consequence, they are at risk of losing their relevance as a helpful investment decision instruments. Although the Financial Accounting Standards Board (FASB) has recommended voluntary disclosure of unrecognised intangibles and the International Accounting Standards Board (IASB) has considered it essential that narrative reporting of intangibles should supplement financial statements, ways of addressing the issue are underdeveloped in Portugal. This paper seeks to redress that state by analysing the issue in the context of Portuguese Accounting Standards. We explore whether the Portuguese security market values intellectual capital and use our results to assess whether Portuguese financial statements are losing their relevance. We find that Portuguese accounting standards, based on accounting conservatism, give little attention to intangibles. Despite this, unrecognised intangibles seem to be increasing. Between 1995 and 1999, the market to book value ratio (MV/BV) of listed Portuguese companies increased, particularly in high technology and services companies. Whereas Intellectual Capital seems to be an important component of the market value of listed Portuguese companies, reporting practices are random and are based mainly on narrative.
TypeWorking paper
AccessOpen access
Appears in Collections:iMARKE - Documentos de Trabalho / Working Papers
NEGE - Working Papers (Documentos de Trabalho)

Files in This Item:
File Description SizeFormat 
luciarodrigues4.pdf1,42 MBAdobe PDFView/Open

Partilhe no FacebookPartilhe no TwitterPartilhe no DeliciousPartilhe no LinkedInPartilhe no DiggAdicionar ao Google BookmarksPartilhe no MySpacePartilhe no Orkut
Exporte no formato BibTex mendeley Exporte no formato Endnote Adicione ao seu ORCID