framework is not without flaws. Efforts to have more meaningful analysis of knowledge capital run into the problems of subjectivity. The following questions are raised: 1. Will IC measurements and disclosures reveal too much to competitors?2. If there is too much subjectivity, will managers pressure accountants to make the IC numbers look better than they really are? 3. What about stockholder lawsuits over inaccurate measurement of IC? 4. Is it too difficult to obtain the information required for the IC report?Financial1. Total Assets ($)2. Total Assets/Employees ($)3. Revenues/Total Assets (%)4. Profits/Total Assets (%)5. Revenue resulting from new business operations ($)6. Profits resulting from new business operations ($)7. Revenues/Employee ($)8. Customer Time/Employee Attendance (%)9. Profits/Employee ($)10. Lost business revenues compared to market average (%)11. Revenues from new customers/Total Revenues (%)12. Market Value ($)13. Return on net asset value (%)14. Return on net assets resulting from new business operations15. Value-added/Employee ($)16. Value-added/IT Employee ($)17. Investments in IT ($)If the firm has a good information technology (IT) infrastructure, there is no data required for this part of the IC report that is not relatively easily obtainable. For firms that do not have the IT in place, some portions of this IC report would not be available, or investment would be required to obtain this data.This portion of the IC report provides forward-looking information to an investor. The investor would know the effect on revenue of new customers, lost customers, and new operations of the company. Measures such as Value-Added/Employee and Value-Added/IT Employee attempt to measure the intellectual knowledge employees bring to the company.An issue raised by this report is giving too much information to competitors too easily. This type of data is principally used for internal purposes.Customer1. Market Share (%)2. ...
