Towards A Meta Theory Of Accounting For Knowledge Management: Review The Realities To Stage The Critical Thinking Of Knowledge Business Model


Ahmed Ali Mohammad


Knowledge management has always seen as an engine to converttacit knowledge into explicit. Knowledge assets are facilitators to makesuch conversion. Knowledge management paradigm is a turning point in themanagement theories of business. When such paradigm has business dominance,it is time to question how to account for it ? Accounting for “how” and “why”has been largely neglected by the professional bodies and scholars of accounting.Accounting for knowledge management paradigm can be very critical in termsof questioning some of the fundamental assumptions of financial statements.The focus has been very narrow and anachronistic. Accounting for knowledgemanagement is a problematic issue warrant further investigations. Its involvesfar more than the need to address the paradoxes and lacks of accounting modeland practices. The extension of institutional accounting theories highlights howaccounting against knowledge management is totally different from accountingfor operations? Yet, the failure is shaped by the areas of asset recognition andthe appropriateness of the going concern assumption. The virtue of conflict isgrounded in nature of key assets, materiality, agility, visibility, periodicity,creativity, connectivity, interactivity, continuity, and survival. This paper arguesthat accounting for knowledge management must be based on understanding thedynamic nature of knowledge management. This paper contributes to accountingliterature by being the first to identify how knowledge management reality hasshaken the theoretical logic of accounting.



knowledge management
knowledge assets
value paradox

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