The meaning attached with the term intellectual capital has wider connotations. In order to understand its meanings we need to move beyond traditional forms of understanding associating with the functions of a normal balance sheet. Financial auditors and accountants do have a tendency to refer the normal balance sheet when they tend to fix the issues regarding monetary balances. The resources of fiscal accounts are well calculated and deeply managed with its corresponding numerical values put inside balance sheets.
Most of these resources are properly calculated and divided into different resources in terms of human, organisational, relational, monetary and physical resources within an organisation. From all of these, there are various forms of tangible resources which we do find such as in the form of monetary and physical resources. Both of these resources are tangible in nature. Physical resources consist of hardware resources of organisation such as land, building and machinery which can be seen and can be visible.
Monetary resources consist of cash, debtors and investments. Both of these tangible resources can be calculated with ease as both of these resources can be calculated easily and can be easily put into numerical values. It calculates the form and factor of depreciation and diminishing returns and while calculation all these conventional methods are well guarded and well compiled.The calculation comes from the thinking of the fact that the more you work with machines, the more the form of depreciation comes about as the productivity factors involved with it come from the form tangibility and visibilities aspects.
The most difficult part in the calculus of accounting comes from the extreme calculation of intangible assets which act in complete reverse from the standard operating procedure involved with counting of accounting standards.Intangible assets generally follow the law of increasing returns. It entirely depends upon the brand asset values which are considered intellectual capital of companies. The more the brand value of the company the more increasing returns come from it and more dividends and attached gain comes from it.
That is why many companies buy good ventures which do have a stronger presence in the market and unarguably these provide the highest form of increasing returns to the companies and that makes entire processes of thinkings and its inherent parameters to perform for it maximum returns. The other three resources associated with the calculations of accounting standards deals with the presence of human resources which include competence of work forces, their inherent knowledge base in meeting and attending and solving various conflicting situations the agility involving with intellectual competences, the work culture depicting the forms and the manner the organisation runs and the ability to produce smarter and wider aspect of relational buildings makes entire prospect of calculation of human resources perform at the best.
These resources stay within the firms till the date the people and the workers stay with it, and the day they leave the company these advantages coming out of the work standards of these resources also gone forever. These are temporary resources but it is the duty of companies to look good to them so that the benefits coming out from their association also remain constant.
Next resource is known as organisational resources which does stay with firm and its acquired competences from the standing of structures, different systematics and entire form of processes which are completely attached and managed and it remains with companies forever without doubt and continue to provide additional forms of advantages in the forms of resource managements. These are meant to support operational advantages to the company and its resources increase many folds with it. The brand name, organisational work culture, different prototypes, various documented evidences and informations and intellectual property rights involving the processes and management of the company.
The last not the least of the sum of processes that involves the entire understanding of calculations of company in terms of processes and its values comes in the form of relational resources which is the sum total of all such external resources which have proper and managed relationships management such as customers, suppliers, media, strategic partners and other types of various ancillary units. These resources are not owned and managed by the company but still due to its strategic importance as an ancillary institution and the need for the main company to deal with it and manage it in the importances attacked with such strategic competences comes in many folds.
Last three resource points are the examples involving with management of intangible resources which define and propagate the importance attached with it and thew way these should be calculated with defined and well accumulated proportions that need to be calculated with refined attachments so that the proper calculative price in accounting standards needs to be reflected with well defined and managed calculative evidences.
Human capital, organisational capital and relational capital all accumulated into the form and factor of intellectual capital primarily from the point of view of knowing that all these forms and association of intangible assets needs to be calculated from the point of defined and well calculated move where we could find the more and more proportional form of asset optimisation but these calculations needs to be done with supreme precise and good quality management point of view. All these intellectual capitals combine with each and every form of attachments of profiling aspects of company with tangible resources to produce awesome form factor and the compilations of comprehensive work capital which accumulates and creates a positive work environment and complete resource optimisations.
The way to manage and find about the real values associated with intellectual capital comes from the fact that it is the combined form of calculative experiences comes out in the wake of comprehensive management of extracting the numerical values involved with continuous growth and management propelling out from the maximisation of attached benefits coming out from the perspective of intellectual capital. It remains with the form and factor of the complete value chain and its growth and development comes out of different calculative standards involving the format and formations of processes that make entire value addition to the structure of organisation.
No company could enhance further without further growth and development attached with intellectual capital. It remains always that the majority of tangible aspects of company deals with the processes involving the forms that associates its formation of intangible resources that make entire processes of organisational standards more formative and involving the entire genre of value chain managements. Intellectual capital includes all sorts of intangible resources that include and provide value management to companies and that enhance the value propositions for different connotations.
This means that all sorts of intangible resources are not the example of intellectual capital but the such and such intangible resources that involvement with the creations of value propositions are examples of intellectual capitals. Competitors can imitate the tangible assets of organisation but it is difficult to imitate the intangible assets of organisation as these are most of the power, completely sustainable, demanding and provides additional forms of advantages to organisations. These forms of intellectual capital progress the organisations of many foods to make them the complete and most powerful organisational structure within peripheries of many such organisations in the same fields.
That is why now most companies are stressing hard for development and management of intangible assets and intellectual capital to make it more and more proficient and most accumulated capital management. It provides the well defined and well calculated resources for organisational standards and does provide the most vibrant and well calculated move for the companies to cross over the competitive barriers against immediate challenges. That is why the value part of intangible resources is far higher and it continues to grow further if proper management of such resources are well taken into consideration. Unlike tangible resources it does not have an expiry or diminishing returns every year countings.
Intangible assets provide accumulated resources and create vast form of development in terms of additions of values of assets and it does implicate and provides a wide array of divisive form of implementing physical development and asset implementations. These are some of the part of extra values that come from the instances of developing the complete market values in the accumulation of intellectual capital that increases the potential probabilities to sustain and manage the constructive form of development of market values.
It creates one of the most outstanding form of development in terms of knowledge based society where every form and gathering of probabilities come in the wake of completing development attributed towards maximisation of resource management. It all completely depends upon the constructive form factors that provide proper hiring policies and recognising and hiring of necessary competitive specific job instruments that relate with the creation of extra resources. Intellectual capital does not come in single and magic manners but it comes with proper training and continuous developmental phases where it needs to be seen and well attended so as to find the real form of it and the processes involving it grows further.
Most organizations do not work too well if the processing of information and management of such spread of informations does not come handy to all of its concerned departments.It encourages creativity and provides the most accessible form of informations management to encourage development of intellectual capital. It needs urgent attention for the complete development of out of the box thinking and processing of newer information management so as to put forward the processes of complete thinking parameters in its fullest swings. Work is fun and it should not be a serious business at all and make the entire work structure and environment funny and mostly the interesting so that the internal work force should feel the ease with it and does provide huge relief for development of entire work standards.
The development standards of companies which aims to develop and sustain for longer run should be looked into the terrain and the glasses of developing all these intellectual properties that involves and make entire process and structures of organisation to make it the most standard and viable developmental excellences. Most of these successful companies of the future turn to these sorts of developmental standards and in turn they produce one of the most outstanding form of development which continues untethered with market situations and conditional analogies involving with the development and the provision of consistencies of market orientations. Ultimately the development standards and its consistent amiable properties move towards acquiring these knowledge of excellence and turn them into the most profitable venture capital that should provide an additional form of continuing asset management to organisation.