Conservatism of intellectual capital and relevance of earnings
This paper critically reviews the conservatism of accounting (by applying M/B value ratio) to pave the avenue of encouraging and the recognition of intellectual capital in financial reports of firms. This paper justifies this assessment in order to extend recognition and disclosure of intellectual c...
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Center for Promoting Ideas (CPI)
2011
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my.utm.398052019-03-17T04:02:21Z http://eprints.utm.my/id/eprint/39805/ Conservatism of intellectual capital and relevance of earnings Sofian, Saudah Abdul Rasid, Siti Zaleha Mehri, Mohammadghorban HD28 Management. Industrial Management This paper critically reviews the conservatism of accounting (by applying M/B value ratio) to pave the avenue of encouraging and the recognition of intellectual capital in financial reports of firms. This paper justifies this assessment in order to extend recognition and disclosure of intellectual capital to increase value relevance of earnings and also decrease the gap between market and book value. Review of this paper suggests that generally accepted accounting principle (GAAP), accounting standards and conservative of accounting prevent the recognition of intellectual capital. These standards should be improved to fulfill the stipulations of the new economy. Therefore , this paper proposes a model that evaluates the impact of conservatism of intellectual capital on relevance of earnings. Center for Promoting Ideas (CPI) 2011-06 Article PeerReviewed Sofian, Saudah and Abdul Rasid, Siti Zaleha and Mehri, Mohammadghorban (2011) Conservatism of intellectual capital and relevance of earnings. International Journal of Business and Social Science, 2 (10). pp. 26-30. ISSN 2219-1933 http://dx.doi.org/10.30845/ijbss DOI:10.30845/ijbss |
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HD28 Management. Industrial Management Sofian, Saudah Abdul Rasid, Siti Zaleha Mehri, Mohammadghorban Conservatism of intellectual capital and relevance of earnings |
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This paper critically reviews the conservatism of accounting (by applying M/B value ratio) to pave the avenue of encouraging and the recognition of intellectual capital in financial reports of firms. This paper justifies this assessment in order to extend recognition and disclosure of intellectual capital to increase value relevance of earnings and also decrease the gap between market and book value. Review of this paper suggests that generally accepted accounting principle (GAAP), accounting standards and conservative of accounting prevent the recognition of intellectual capital. These standards should be improved to fulfill the stipulations of the new economy. Therefore , this paper proposes a model that evaluates the impact of conservatism of intellectual capital on relevance of earnings. |
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Article |
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Sofian, Saudah Abdul Rasid, Siti Zaleha Mehri, Mohammadghorban |
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Sofian, Saudah Abdul Rasid, Siti Zaleha Mehri, Mohammadghorban |
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Sofian, Saudah |
title |
Conservatism of intellectual capital and relevance of earnings |
title_short |
Conservatism of intellectual capital and relevance of earnings |
title_full |
Conservatism of intellectual capital and relevance of earnings |
title_fullStr |
Conservatism of intellectual capital and relevance of earnings |
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Conservatism of intellectual capital and relevance of earnings |
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conservatism of intellectual capital and relevance of earnings |
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Center for Promoting Ideas (CPI) |
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2011 |
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http://eprints.utm.my/id/eprint/39805/ http://dx.doi.org/10.30845/ijbss |
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