Methods of measuring intellectual capital

This paper expands a working definition of intellectual capital. In addition, methods of measuring intellectual capital at both the individual-incorporator and organization levels are also presented. This provides a good tool for enterprises to manage their IC.Intellectual capital is becoming the ultimate resource for creating economic wealth. It is intangible, elusive, mobile and hard to constrict. This intangible nature of intellectual capital has clear implications for organisations as well as those who try to determine their worth or estimate their performance.Tangible assets such as property, plant, and equipment continues to be important components in the production of both goods and services. However, their relative importance has deteriorated through time as there has been an upsurge in the importance of intangible knowledge-based assets. This provides an exploratory foundation for accounting systems and processes which are useful for meaningful management of intellectual assets.