A Study on the Intellectual Assets Reporting Model for Steel Industry Firms
Asian Tax Journal Vol. 10 No. 4 (2009), pp. 263-291
Abstract
Many countries perceive that intellectual assets reporting can help create firm value since traditional financial reporting systems might not provide meaningful information about firm's quality and growth. Therefore several countries under the leadership of OECD develop standard guideline and encourage firms in using reporting frame of intellectual assets as a communication tool. It is hard to apply standard reporting frame in practice, in spite of efforts to develop standard intellectual assets reporting framework, because intellectual assets vary from industries. This paper proposes intellectual assets measures and reporting model of steel industry based on P firm which could be regarded as a leading company in steel industry in the world. The results indicate that brand images, customer satisfaction index and product/division market share are recognized important factors in customer assets, and that governance structure/management transparency, long－term/stable ability to acquire raw materials and new product/advanced technology adoption are identified as important elements in structural assets. In human capital assets, leadership of managers and experiences/abilities, abilities to create value－added, and stable relationship between labor union and management are recognized as important factors. Respondents prefer quantitative form of information for customer and human capital assets while they prefer qualitative information for structural assets. Moreover they support to disclosure intellectual assets semiannually in the form of separative report. This paper makes following contributions. First, it contributes OECD leading research related to industrial intellectual capital reporting and it stimulates domestic intellectual capital research not working well after the research of Korea Accounting Institute(2000). Second, it contributes for capital market including investors to acquire useful informations about firm's value and growth since it helps steel companies to disclose its intellectual assets voluntarily. Third, it might be a catalyst to develop industry－specified intellectual assets reporting models in other industries besides steel industry.
Keywords
- Intellectual assets
- Human capital assets
- Structural assets
- Customer assets
- Measurement Indicators
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