The Research On Accounting Recognition And Measurement Of Core Competence Of Enterprise

The theory of core competence of enterprises has become a highly-attractive onesince C K Praharad and Gray Hamel put forward the concept in1990s,which found asolution for enterprises seeking for "evergreen" in the fierce market competition.Accounting should disclose information about the core competence of enterprises as ainformation system that is useful to decision making.Above all,there two questions to be solved before accounting processing.firstly, theessence and constitution of core competence should clarified. secondly,theories aboutaccounting recognition and measurement should be discussed,too.These twotheoretical basis,as two theoretical lines throughout the study,unified in the objectiveof “useful to decision making”.The second question is which elements could the core competence of enterprises beclassified in for the recognition and measurement. This study analyzed characteristicsof property of the core competence,and from a new perspective of its essentialcharacteristics-the core competence could bring permanent income toenterprises,which is the main basis for the selection of method of its accountingrecognition and measurement.As the measurability of an accounting elements is the hypothesis to berecognized,the next question is to discuss the assessment of overall value,then itsrecognition.there are two main view on assets for accounting, economic resource andfuture economic benefits,so the study need to discuss these two aspects either.Finally, recognition of core competence needs evaluation methods to determine howmuch every element cost in whole value proportion,then record every elements throughAccounting entries and finally into the financial reports.So the recognition was dividedinto two stages, recording and financial statements...