The World Intellectual Capital Initiative (WICI) and the International Integrated Reporting Council (IIRC) have signed a Memorandum of Understanding (MoU) to ensure that "intellectual capital" is reflected as a key source of an organisation's value creation within Integrated Reporting (IR).
The IIRC's chief executive Paul Druckman said "Communicating how an organisation develops and exploits intellectual capital and deploys innovation is key to understanding value creation. We look forward to deepening our collaboration with WICI in this important area.
"Standard & Poor's, a US ratings firm, published research which demonstrates that in the 1970's 80% of a company's market value could be traced through to its financial statements. Today, only around 20% of a company's market value can be accounted for by its financial and physical assets.
"Corporate reporting needs to evolve in order to reflect this change - IR provides the framework to do so, and our collaboration with WICI gives the whole initiative further energy."
Related Links
The World Intellectual Capital Initiative
The International Integrated Reporting Council
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WICI and IIRC sign MoU
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