gender differential paper IJCRB

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
This model not only considers the defects of Tobin’ Q ration but also tries to maintain the abovementioned
value through monetary assessing of intellectual capital and its division into human
capital and structural capital.
The return model
The main problem in the area of intellectual capital measurement is the combination of
this capital’s profit with other organization’s capital. Using the net profit of the organization is
the model that can separate the profit of this capital from the other capitals of the organization.
First, the profit before the deduction of tax and interest was considered but since interest is also
one of the managerial decisions, the net profit became the basis,
One of the basic financial statements, which companies required to prepare, is the statement of
profit and loss with which the net profit of the unit would be shown. It can be basis for
measuring and assessing the intellectual capital so that the net profit of the unit would be
compare to the reported net profit of the industry (the industry index), any remainder can be
called intellectual capital. With the belief that the reported net profit of the industry is just from
the usual capital and it does not include the intellectual capital. Now considering the fact that the
company’s net profit and the net profit of the intellectual capital belongs to the specific
intellectual capital book value and replacement value can be used. The book value or the assets
replacement would be divided by the reported net profit through industry index and the
remaining would be multiplied by intellectual capital’s net profit (which already has been
calculated). The balance shows the overall value on intellectual capital. Although using the
replacement value is difficult, it is more accurate than the recorded value. This model can be
applicable first when there is an industry index; second, this index enjoys sufficient accuracy.
For example, if a company has recorded assets of $6000000 and the reported net profit by
company and industry is $2000000 and $1500000 respectively, the gained remainder of $500000
can be identified the intellectual capital return or part of the intellectual capital’s profit.
According to the industry index, the asset is divided by the book value or the net profit
replacement. The gained result is 4. Therefore, it can be stated that the intellectual capital value
equals 200000 as it is mentioned earlier, it is better to use replacement value that is more
accurate instead of the book value.
The proposed models interpretation
As it is clear, no single model, possess an absolute measurement of intellectual capital.
Therefore, the need would be searching models that are practical and operational. However, the
combination of the previous presented models may also solve the problem.
The proposed models are designed based on the accounting rules and principles which are
expected to be of interest for accounting professional societies. These models are also focused by
management, because intellectual capital is measured by monetary and financial measures in
such a way that management during preserving the existing and reported values will attempt to
promote it. However, the non- monetary ways may evaluate intellectual capital components
accurately. While management looks at the reports from monetary and financial perspective, thus
it cannot be easily accepted. The monetary characteristic of these models will provide
comparability for the users to comment on this part of capital.
The other advantages of this model are that they are easy to measure. In these models,
accountants can easily calculate organization’s intellectual capital and the attempt is to fulfil the
right of intellectual capital to some extent. This simplicity makes the intellectual capital report to
lead the user’s intelligibility regarding the capital. Perhaps the intellectual capital return method
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