Intellectual Capital becomes an interesting topic to discuss and to research
because it provides more value for the company thereby increasing competitiveness. Many
companies still think that physical assets such as land, machinery, and labor that can
generate profits for the company, so that the exclusion of non-physical assets (intellectual
capital) such as, knowledge and competence of employees, customer relationships,
innovation, and administration of computer systems, creativity in designing a unique product
as well as the ability to master technology. Therefore, it should be realized by the owners or
top management that the training programs to improve employee competency needs to be
improved rather than just buying land for business expansion and new machinery. Based on
the research from experts proves that companies that have a more intellectual capital than its
competitors the company more profitable, as well as financial performance and firm value
better. Viewed from the standpoint of accounting, disclosure of intellectual capital can be
seen from the financial reporting of the company through good training programs and human
resource spending can increase employee competency, so that the impact effect on Free Cash
Flow (FCF) is rising