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Capital isn't profit


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Posted by Kees de Vos on September 19, 2002 at 07:55:23:

In Reply to: New insights into KM and IC posted by Mezei on September 06, 2002 at 17:44:06:

If I have $ 1.000.000 (I wish :)) and get a 5% interest from the bank I have a revenue of $50.000, if I do not have any costs or taxes to pay I end up with a profit of $50.000.

So stating that a profit of $450 million equals $450 million Intellectual Capital can't be right.

Intellectual Capital is a subjective (so no right, no wrong, but somewhere in the middle :)) value put a intangible, almost etherical, entity. Or if you look at the current accounting principles: the worth of everything we can't explain -> [(number of stocks * current stock prize) -/- bookvalue of the companies assets]



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