Approaches and evaluation of intellectual capital in the financial statements for reporting

With the transition to knowledge-intensive economy, intellectual capital has become an important asset for companies. Companies realize that their competitors gain long-term earnings by proposing assets that make a difference. Rather than physical assets can be found in all enterprises, they tended to invest intangibles asset such as information, database, skilled labor, brand and customer relationship. This situation makes it mandatory to display intellectual capital in financial statements which is strategically important for the companies.It is expected that financial statements which was prepared to exactly satisfy information needs of company, should be compatible with the fair value. At this point, intangible assets which is an international capital, should be placed in the financial statements with their fair values.A complicated situation is arised in the addition of intellectual capital whose numerical value is calculated, to the accounting system. Both The Uniform Accounting System and International Accounting Standards (IAS) are insufficient to explain intellectual capital. In these standards, it is permitted to report the values which are bought by a certain amount instead of the values which are created inside the company. The cautious approach is an obstacle in revealing the fair value of the company.One of the important studies is to add intellectual capital to the financial statements in order to decrease the gap between fair value and corporate value of the companies. For this purpose, intellectual capital should be investigated as a seperate standard and recreated as it covers all elements of that among intangible assets. The presentation of intellectual capitals of company is really important for determination of fair value and accuracy of the decisions about the company.There is no currently standard developed in the international platform for measuring and reporting intellectual capital at financial statements. It is thought that the disorganized studies can be applied and compared to the standards which are made by International Accounting Standards Committee (IASC) and Financial Accounting Standards Board (FASB).Key Words:1. Intellectual Capital2. Methods Measuring Intellectual Capital3. Reporting on Intellectual Capital4. Approaches for Measuring Intellectual Capital5. IAS 38