A Research On The Core Capabilities Of Companies And Their Accounting Records And Disclosure

Latest research results show that competitive advantages are the results of core capabilities. They are also important to their performance promotion for companies to keep their competitive advantages with the declining economic promotion and increasing global completion. The research climate was raised about core capability by theoretical professionals after famous American strategists C. K. Prahalad & Gary Hamel issued the paper of companies'core capability in 1990. Therefore, some famous companies in Europe and Asia wined long-term international competitive advantages by managing and applying their core capabilities to keep their competitive advantages.China focused on the research of core capabilities from 1990s and some research results have formed successfully. However, normatively, science-basis and consistence are in chaos by now because of the argument within the theorists. Few theorists studied the core capabilities systematically in view of accounting and applied those to practical fields, which results current accounting system ignoring and underestimating the value of companies. This question may induce the misleading of information users and holding back the development of companies themselves. To explore the ways of reformation, they are analyzed systematically in the paper about finding, identification, cultivation, reorganization, measure and timely disclosure for core compatibilities, which lead to an integrated independent, integrated and logic system.This paper consists of seven chapters. Major contents of each chapter are outlined as following:Chapter 1 is the introduction, which briefly introduces the research background, issues under research, research ideas, research contents and its' origination.Chapter 2 is the literature review. Some basic theories about the research are explained basically for core capabilities and accountings reflect. Schools and theoretical framework of core capabilities are totally reviewed and assessed.Chapter 3 analyzes the drivers and identification of core capabilities. Merits BSC's reference, four factors are focused for identifying and cultivating companies'core capabilities. Some excellent companies in industry of real estate and energy resources are paid close attention to, and their core advantages are found. Some well-known core capabilities are fatherly identified.Chapter 4 is about the reorganization of core capabilities. The conditions and rules even their partial application are analyzed with the beginning of the theoretical progress. Meanwhile, necessity and feasibility are briefly pointed out. They are the important aspects for discuss of recognizing conditions, recognizing standards, recognizing ways and non-accounting factors for core capabilities.Chapter 5 is about the measures of core capabilities. It is indicated that proper classification is the base of accurate measurement by introducing basic theory and latest research results. After understanding the measurable features of core capabilities, such measure ways are brought up as direct measures based on monetary, in-direct measures based on non-monetary and challenging non-monetary measures.Chapter 6 is about the information disclosure of core capabilities. This paper fatherly points out complete resolve ways about disclosure contents, ways and channels of core capabilities after introduces the rules about information disclosure, the present situation and failure. Eventually, a new imagine is described in words to disclosure the core capabilities information by extensive business report language under the circumstances of IT rapid development.Chapter 7 is the last chapter of the paper. This chapter sums up the research findings and conclusions. Some suggests are explained to government, company and individuals. The author also points out the directions for further research.The main findings and conclusions of this paper can be summarized as following:1. Some conclusions about the identifications of core capabilities. The factors that affect companies'core capabilities mainly include employee's study and group, internal progress improvement, customer's satisfaction and financial performance. Some ways can be adopted to assess fatherly by self-assessment, industry comparison, basis analysis, cost drivers analysis, activity-based costing, even by the information from competitors. They are common on resources, policy advantages and internal progress improvement when core capabilities are identified, while they are featured by industry about companies'culture, technical creation and social responsibilities.2. Some conclusions about the reorganization of core capabilities. If core capabilities conform to the definition of assets, the two reorganization conditions are relative economic benefits may flow into the company and relative cost can be measure reliably. On the side of reorganization time, activities both before transaction and after transaction are comprehensively analyzed. On the side of reorganization ways, the method of dealing with intangible assets can be used for reference, and properly thinking about adding non-accounting reorganization to the report by disclosing them in annotation.3. Some conclusions about the measures of core capabilities. Some ways are introduced as the monetary-based measure ways of history cost, excess return capitalization and excess return discount. Another non-monetary-started measure way is "the way of transforming assessment after professor marks", which can smooth the aspects that can only measured by non-monetary-started ways.4. Some conclusions about the information disclosure of core capabilities. The contents of core capabilities disclosure includes but not constrict to the information of basic resource support and policy protect, the information of internal progress improvement and social imagine construction, the information of risk management and its promotion. Proper information disclosure need companies practically choose the information. The paths of information disclosure include by additional to financial reports, by communication with professional analyzer and by publishing on media. The ways of information disclosure include reporting in financial statements, explaining outside financial statements, expressing in annotations of financial statements et al. Under the conditions of IT rapid development, information disclosure via XBRL will be an inevitable trends.This research is exploratory in nature; major improvements and innovations are evident in the following aspects:1. This paper conducts a series of research about core capabilities information deals and disclosure in views of accountings. A four-side idea and ways are constructed involving core capabilities'identification, reorganization, measure, information disclosure, which is the rare and cherish research in the academic community.2. This paper explains the ways to identification and measuring core capabilities in view of accounting, which extends the fields of reflects of intangible assets. What's more, the paper also explores the new means of measure, pointing out the measure ways of in-direct measures based on non-monetary and challenging non-monetary measures above direct measures based on monetary.3. On the aspects of core capabilities disclosures, some results are formed about traditional and modern disclosure means, contents and rules et al, which can advance the creation of accounting theory and its practice.