The balance sheets for the knowledge-based organizations – a definition from the Polish Wikipedia.

The Polish Wikipedia not only mentions about the new branch of financial accounting. It also indicates the new forms of balance sheets for knowledge-based organizations. Just check entry for „Balance sheet (accounting)” (in polish: bilans (rachunkowość)). There you will find a point „Balance sheet for knowledge-based organizations” (in polish: bilans dla organizacji opartej na wiedzy). Here is my attempt of translation:

 

Traditional company’s balance sheet does not disclose the number of categories of intangible factors of production characteristic of the knowledge-based economy. Therefore, in accordance with the principles of the new branch of financial accounting for competence assets and intellectual capital, it is recommended to prepare the knowledge-based balance sheets or the full balance sheets alongside the traditional balance sheets. The knowledge-based balance sheet is a logical unfolding of the traditional balance sheet, which was completed on the asset side of the part of the "competence assets" and on the liabilities side of the part of the "intellectual capital" . Competence assets consist of the following reporting positions: knowledge, skills, experience and research projects. Intellectual capital consists of: adopted intellectual capital, generated intellectual capital and experience capital. In turn, the full balance sheet additionally includes "marketing assets" and "relationship capital". The introduction of these reporting categories does not break the balance sheet, since economic values presented in the new balance sheet positions arising from double entry records of business transactions on the corresponding accounts. The knowledge-based balance sheets and the full balance sheets are optional component of the financial statements, which can be attached in additional information. These supplement of the financial statements, although not mandatory, positively impacts on its quality, i.e. relevance, reliability, faithful presentation, prevalence of substance over form and completeness.

 

Views: 207

Comment

You need to be a member of Smarter-Companies to add comments!

© 2019   Created by Mary Adams.   Powered by

Badges  |  Report an Issue  |  Terms of Service