Accountancy – is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in monetary terms the economic resources under the control of management. [Source: Elliot, Barry & Elliot, Jamie: Financial Accounting and Reporting, Prentice Hall, London 2004, p. 3]
Economic resources (factors of production) – knowledge, labour, capital
Accountancy of knowledge – is the process of communicating financial information about a knowledge-based business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in monetary terms the knowledge resources under the control of management.
Knowledge-based business entity – depositary and user of knowledge resoureces
Knowledge workers – depositors of knowledge resources
Assets – all things owned by a person or business and having some money value, esp. if they can be used to pay debts, produce goods, or in some way help the business to make a profit. [Source: Longman Dictionary of Business English, p. 34]
Intellectual capital (IC) – position of liabilities equivalent to the value of competence assets
Competence assets – knowledge, skills, professional experience
Cost – the price paid for something, also refers to a person paying for professional education and competencies
Historical cost – the original cost of an asset
Current cost – the present market price of an asset
Opportunity cost – the value of the best alternative that was not chosen in order to pursue the current endeavour