Keywords: intellectual capital, value creation, value creation efficiency, measuring
VAIC™ – an accounting tool for IC management
The existing accounting system cannot meet the requirements of modern companies any more because not costs but value creation is the core of modern business. If a company aims to achieve a maximum result with its given resources management must know how successfully they create value in the company. Information provided by a basic economic function - measuring the efficiency of value creation - is therefore decisive for successful management of intellectual assets. The VAIC™ method measures and monitors the value creation efficiency in the company using accounting based figures. The better a company's resources (capital employed and intellectual capital) have been utilised, the higher the company's value creation efficiency will be (whereby human capital, as the decisive value creation factor of modern business). This results in an increase of value added on the one hand and determines the market value on the other hand, as our research has shown.