Realising the importance of intellectual capital in the knowledge-based economy, Malaysian companies should begin to monitor intellectual capital within their management accounting and information system; some may already be doing so. This research intends to explore the status of internal intellectual capital reporting practice specifically the importance and availability of intellectual capital information within firm. Data was obtained from companies listed on the main board of Bursa Malaysia via a postal questionnaire. It was found that Malaysian managers regarded intellectual matters as having considerable importance (a mean score of 5.52 on a scale of 1 to 7) to their companies with customer capital information being the most important as compared to human and organizational capital. The extent of availability of intellectual capital information could described as moderate (a mean score 4.71 on a scale 1 to 7). This implied that there was an under provision of intellectual capital information within Malaysian companies suggesting a need to develop an internal information system system dealing specifically with intellectual capital. Given the elusive nature of intellectual capital the eight categories of intellectual capital can assist managers in their measurement and management of IC. Categories of intellectual capital information develop form the empirical data are potentially useful reference points for companies to communicate intellectual capital internally. They also enable managers to understand better what constitutes intellectual capital giving them greater opportunity to “make sense” of this intangible concept. Management and financial accountants should work together to develop a framework for monitoring key elements of intellectual capital, for use in reporting intellectual capital internally and also, after removing competitively sensitive information, for supplementing corporate external reporting in the future.

Research Team :
•  Ms Huang Ching Choo

Institute :
UiTM