The measurement and financial reporting of intellectual capital by portuguese listed companies

Detalhes bibliográficos
Autor(a) principal: Rodrigues, Lúcia Lima
Data de Publicação: 2002
Outros Autores: Oliveira, Lídia
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/334
Resumo: 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.
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spelling The measurement and financial reporting of intellectual capital by portuguese listed companiesFinancial ReportingIntangiblesIntellectual CapitalPortugalStandardsAccountingConventional 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.Fundação para a Ciência e TecnologiaUniversidade do minho. Núcleo de Estudos em Gestão (NEGE)Universidade do MinhoRodrigues, Lúcia LimaOliveira, Lídia2002-112002-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/334enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:27:18Zoai:repositorium.sdum.uminho.pt:1822/334Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:21:50.757146Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The measurement and financial reporting of intellectual capital by portuguese listed companies
title The measurement and financial reporting of intellectual capital by portuguese listed companies
spellingShingle The measurement and financial reporting of intellectual capital by portuguese listed companies
Rodrigues, Lúcia Lima
Financial Reporting
Intangibles
Intellectual Capital
Portugal
Standards
Accounting
title_short The measurement and financial reporting of intellectual capital by portuguese listed companies
title_full The measurement and financial reporting of intellectual capital by portuguese listed companies
title_fullStr The measurement and financial reporting of intellectual capital by portuguese listed companies
title_full_unstemmed The measurement and financial reporting of intellectual capital by portuguese listed companies
title_sort The measurement and financial reporting of intellectual capital by portuguese listed companies
author Rodrigues, Lúcia Lima
author_facet Rodrigues, Lúcia Lima
Oliveira, Lídia
author_role author
author2 Oliveira, Lídia
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Rodrigues, Lúcia Lima
Oliveira, Lídia
dc.subject.por.fl_str_mv Financial Reporting
Intangibles
Intellectual Capital
Portugal
Standards
Accounting
topic Financial Reporting
Intangibles
Intellectual Capital
Portugal
Standards
Accounting
description 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.
publishDate 2002
dc.date.none.fl_str_mv 2002-11
2002-11-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/334
url http://hdl.handle.net/1822/334
dc.language.iso.fl_str_mv eng
language eng
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dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade do minho. Núcleo de Estudos em Gestão (NEGE)
publisher.none.fl_str_mv Universidade do minho. Núcleo de Estudos em Gestão (NEGE)
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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