Prior literature on reporting of firms has upraised a concern about the utility of traditional reporting of the
firm for better decision making. Traditional reporting offer imperfect information have been criticized for
their historical orientation.in this context, the importance of inculcating the non-financial information
including intellectual capital into the reporting framework of the companies has arisen. The
IIRC(international integrated reporting council) working on integrated reporting come up with an ample
reporting framework which shows the importance of including non-financial information in the firms
reporting framework. Intellectual capital(IC)has considered as an important element in non-financial
information. Past literature has identified that IC information can reduce the increasing disparity
amongmarket to book value of a company. Hence IC information has to consider as at most important
item that has to be incorporated in the corporate reporting framework at the earliest. So, the core is that IC
of a firm add value to the firm and that would reflect in the market, especially in the knowledge era where
the importance of intangible assets are getting more and more.