Measuring and reporting intellectual capital: An application on the firms located on BİST sustainability index

One of the main problems of today's business is to uncover intangible assets that make them valuable but invisible in balance sheet. According to accounting literature assets that cause the difference between the market value and the book value and cannot be reported in the balance sheet are called intellectual capital. This study aims to measure and report intellectual capital which makes accountants disoriented while reporting. In the first part of the work the conceptual infrastructure of intellectual was focused on and intellectual capital is divided into three main components. These components are human capital, structural capital and customer capital. Human capital is a resource that creates value, structural capital is a bridge deliver the value to customers who are users of value and customer capital is users and controller of the value. In the second part of the study measurement methods of intellectual capital are described and divided into two parts: financial methods and non-financial methods. Then the place of intellectual capital in accounting literature was discussed. Finally, one of the financial methods VAIC™ (Value Added Intellectual Coefficient) that used in the third part of the study is also focused on. In the last part of the study it is included the measurement and reporting of the intellectual capital practice. The financial data of the company for the BIST-Sustainability Index applied in the VAIC™ method, the statistical significance of those values are subjected to correlation and linear regression analysis. The reason for selecting the companies traded on the BIST-Sustainability Index, are the proximity of these businesses features that allow them exist in index with intellectual capital cannot be ignored. Finally, some suggestions were made on how to be reported in the balance sheet and in addition to the balance sheet. Keywords: Intellectual Capital, VAIC™, IFRS, BIST- Sustainability Index