Intellectual capital disclosure: what benefits, what costs, is it voluntary?

Intellectual Capital (IC) is embedded within a spectrum of corporate activities. Under current international financial reporting regulations, many elements of IC are not recognised in the financial statements, and are not subject to extensive mandatory narrative reporting requirements. However, the narrative reporting context is constantly changing and, beyond the regulatory environment, the opportunity to voluntarily disclose IC does exists, within the narrative sections of the corporate annual report and other channels of corporate communication. This chapter explores the costs, benefits, restrictions, and alternative perspectives to IC disclosure through a synthesis of evidence obtained from a direct survey investigation of, and follow up interviews with, key specialists in UK listed companies. An analysis of this evidence with interpretative commentary, particularly in relation to recent developments in the narrative reporting arena, provides a platform from which practitioners and academics alike may deliberate the IC disclosure decision