Journal of Accounting and Management Information Systems (JAMIS)

Are corporate annual reports balanced? A case study on intellectual capital issues in the corporate annual reports of a Romanian company

20/2007 ,  

Ioana IOAN
Raluca SANDU

Keywords:   corporate annual reports, value creation, intellectual capital, balanced scorecard, content analysis


Value creation relies more and more on intangible elements, which are difficult to measure and manage, and be reported to shareholders and stakeholders. The financial communication practices of several companies already integrate intellectual capital issues (e.g. Skandia) and standard setters begin to question on the opportunity to set standards on such reporting practices (e.g. FASB Report in 2001). We study here, using content analysis, the intellectual capital issues present in two consecutive corporate annual reports of PETROM SA. The choice of this particular company relies on the reorganization process following the privatization, which represents a critical context for value creation. The results of our content analysis are presented in the form of a balanced scorecard.