EFFAS Commission on Intellectual Capital - CIC
Corporate valuation is a process that requires both quantitative and qualitative elements, combined with a large degree of knowledge and judgement. As such, information on Intellectual Capital plays an important role in shaping analysts' conclusions. There is a growing demand for Intellectual Capital disclosure on the corporate side.
Since a few years Intellectual Capital valuation and disclosure are on the agenda of corporations, standard setters and international institutions. Intellectual Capital Reports describe the development of expertise, competencies and the capabilities of human capital, brand trustworthiness, strategies, R&D and innovation, relational capital and corporate governance, which have become increasingly important as value drivers and assets for the company.
Seen in this light, the Intellectual Capital Report lists the company's future potential, a measure of its capacity to compete in the market, and it may also herald the first signs of weakness which, if not managed in time, could mean difficulties for the company.
As users, investment professionals and their associations support this approach and they play an important role in defining the information needed for an effective analysis, thus raising the awareness of the importance of Intellectual Capital Reporting in the financial community.
EFFAS supports the growing attention and commitment of its member societies to Intellectual Capital Reporting, which is an issue of the greatest importance for investment professionals.
With the latest activities of the OECD, Japan and U.S. Federal Reserve Board experts in the field of Intellectual Capital, the main players in Europe should join forces to be even more visible on a global scale.
Due to the fact that the topic is gaining interest world-wide, and as Europe is still at the forefront of these developments, it is important for EFFAS to combine efforts and be among the initiators.
Chairman: |
Giampaolo Trasi from AIAF, Italy |
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European Coordinator: |
Alexander G. Welzl from ÖVFA, Austria |
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Secretariat: |
Claudia.Stinnes@effas.com |
CIC Principles for Effective Communication of Intellectual Capital