The Electronic Journal of Knowledge Management aims to publish perspectives on topics relevant to the study, implementation and management of knowledge management
Click here to see other Scholarly Electronic Journals published by API
For a range of research text books on this and complimentary topics visit the Academic Bookshop

Information about the European Conference on Knowledge Management (ECKM) is available here.

For info on the International Conference on Intellectual Capital, Knowledge Management and Organisational Learning (ICICKM), click here
Information about the European Conference on Intellectual Capital (ECIC) is available here
To join the EJKM review committee click here
 
Journal Issue
Volume 7 Issue 1, ECKM 2008 / Apr 2009  pp1‑198

Editor: Roy Williams

Download PDF (free)

Knowledge Management Paradoxes  pp1‑10

Jan Aidemark

Look inside Download PDF (free)

Firms as Connected, Temporary Coalitions: Organisational Forms and the Exploitation of Intellectual Capital  pp11‑20

Sandra Begley, Michael J Taylor, John R Bryson

Look inside Download PDF (free)

Intellectual Capital and IFRS3: A New Disclosure Opportunity  pp21‑30

Daniel Brännström, Marco Giuliani

Look inside Download PDF (free)

Abstract

As a response to the absence of an exhaustive generally accepted accounting principle handling the issue of intangibles, academics and practitioners have developed a plethora of models, methods and tools for identifying, measuring and valuing intangibles. Conscious of this situation, some authors have started asking for empirical studies of how these models make the IC issue clearer to stakeholders in general and specifically to the capital market (Guthrie, et al., 2001; Marr and Chatzkel, 2004). The introduction of International Financial Reporting Standard (IFRS) 3 (a regulation demanding the identification and valuation of intangible assets in business combinations) may be considered as the opportunity for a practical application of the methods and tools proposed by the Intellectual Capital (IC) community, i.e. to make intangible assets such as customer capital, know how, etc. visible in the financial statement. IFRS3 is a possibility to disentangle the "black‑box" of goodwill and for the financial accounting issue to adhere to some of the critique emanating from the IC debate. As a result, IFRS3 can be seen as an opportunity to test the relevance of the IC models and to reduce the gap between IC Accounting and Financial Accounting (Petty and Guthrie, 2000; Roslender and Fincham, 2001). Drawing on the debate of how to frame intangibles (Chaminade and Catasús, 2007), the aim of the paper is to analyze the distance, from an empirical perspective, between IC accounting and financial accounting in order to understand if a gap exists. Thus we will investigate how firms have applied IFRS3 by studying what the relevance of intangibles is, which intangible assets have been identified and valued and what goodwill is disclosed as in the purchase analyses. The empirical corpus consists of financial statements of Swedish and Italian listed firms. The methodology adopted is based on an empirical analysis of the purchase analyses supplied by the firms in the financial statements, referring to the first year mandatory adoption of IFRS3 (fiscal year 2006). The disclosed information is analyzed through both quantitative and qualitative analyses. The study finds that the analytical methods are still at a very first stage and consequently there is the trend to appreciate, at least in the financial statement, the majority of the IC as goodwill. The second finding is that even if they represent the minority part of the invisible value of the company, IFRS3 has really allowed for several intangible assets usually not disclosed in the financial statements such as customer relationships, contract portfolio, etc to be made visible. A third finding is the lack of explanations for this amount of goodwill. All in all, the paper highlights that, from an empirical perspective, both financial and IC accounting models are not able to adequately grasp IC "at work". 

 

Keywords: intellectual capital, valuation, financial accounting, goodwill, purchase analysis

 

Share |
Business Benefits of Non‑Managed Knowledge  pp31‑40

Sinead Devane, Julian Wilson

Look inside Download PDF (free)

Predicting the Influence of Network Structure on Trust in Knowledge Communities: Addressing the Interconnectedness of Four Network Principles and Trust  pp41‑54

M. Max Evans, Anthony K.P. Wensley

Look inside Download PDF (free)

Collaborative Development of Knowledge Representations — a Novel Approach to Knowledge Elicitation and Transfer  pp55‑62

Alexeis Garcia-Perez, Robert Ayres

Look inside Download PDF (free)

The Gatekeepers' Intervention in Innovation and Technological Transfer  pp63‑76

Deogratias Harorimana

Look inside Download PDF (free)

How to Improve Your Knowledge Intensive Organisation: Implementing a Knowledge Management Scan Within Public and Private Sector Organisations  pp77‑86

Hans Koolmees, Henk Smeijsters, Sylvia Schoenmakers

Look inside Download PDF (free)

Model to Support Patent Retrieval in the Context of Innovation‑Processes by Means of Dialogue and Information Visualisation  pp87‑98

Paul Landwich, Tobias Vogel, Claus-Peter Klas, Matthias Hemmje

Look inside Download PDF (free)

Dynamic Knowledge and Healthcare Knowledge Ecosystems  pp99‑110

Virginia Maracine, Emil Scarlat

Look inside Download PDF (free)

InCaS: Intellectual Capital Management in European SME — Its Strategic Relevance and the Importance of its Certification  pp111‑122

Kai Mertins, Wen-Huan Wang, Markus Will

Look inside Download PDF (free)

Uncovering a KMSD Approach from Practice  pp123‑134

Aboubakr A. Moteleb, Mark Woodman

Look inside Download PDF (free)

Value, Kaizen and Knowledge Management: Developing a Knowledge Management Strategy for Southampton Solent University  pp135‑144

S J Rees, H Protheroe

Look inside Download PDF (free)

The Concept of Knowledge in KM: a Relational Model  pp145‑154

Colin Reilly

Look inside Download PDF (free)

The Socratic Dialogue in the Work Place: Theory and Practice  pp155‑164

Dan Remenyi, Paul Griffiths

Look inside Download PDF (free)

Social Networking and the Transfer of Knowledge  pp165‑178

Graeme Smith

Look inside Download PDF (free)

Balancing Learning and Efficiency Crossing Practices and Projects in Project‑based Organisations: Organisational Issues. The Case History of "Practice Groups" in a Consulting Firm  pp179‑190

Saverino Verteramo, Monica De Carolis

Look inside Download PDF (free)

Dear Diary: Recommendations for Researching Knowledge Transfer of the Complex  pp191‑198

Carol Webb

Look inside Download PDF (free)