Data Is a ‘Tangible’ Asset There are compelling reasons to start thinking deeply about how to value a company’s data assets for accounting purposes. But Gartner is out to change that. “That is a challenge, as the information is a strategic asset, but because it is not on the balance sheet, it is not treated as such. Step one is to get your mind right and change the way you think about data and see the world economy. by Shiv Bharti on July 19th, 2018 | ~ 4 minute read. The data on your balance sheet can be an asset, but that also means it can be a liability. Having a data strategy is key.

Data on the balance sheet . At the end of your balance sheet, your assets … According to a recent report by Gartner, even the most info-savvy organizations have yet to list their data in the assets column of their balance sheets. Dr. Henna A. Karna. Your assets also will be grouped by category. But Gartner is out to change that.


And businesses really need to manage that asset.” While nobody could argue the value of data today, the difficulty in managing it becomes clearer when considering just how much there is and how little used. -- The value of data will be treated as an asset on the balance sheet and reported by the Chief Financial Officer while the quality of data will become a technical reporting metric and key IT performance indicator.

Step one is to get your mind right and change the way you think about data and see the world economy. While it is common for business people to refer to data as an asset or “currency,” it is not treated as such – well, not yet. Cost; It is a generally accepted that any asset listed on a company’s balance sheet should have an identifiable fair value attached to it. There is a right way to go about this and many wrong, risky ways. Image: CFI’s Financial Analysis Course. Datasets are heterogeneous, meaning market valuation is not always appropriate.
Are You Valuing Data as an Asset on Your Balance Sheet? If data is to be considered as an asset on a balance sheet, there must be a corresponding cost for acquiring or building this asset.

According to a recent report by Gartner, even the most info-savvy organizations have yet to list their data in the assets column of their balance sheets. The first option, of course, is the status quo: simply ignore the value of information as intangible asset. It’s not that they don’t value data — they just have no accounting models for measuring that value. In 2016 the Financial Accounting Standards Board (FASB) assembled a group of researchers to study updating its accounting rules to potentially record data as an asset. It can also be referred to as a statement of net worth, or a statement of financial position.

It’s not that they don’t value data — they just have no accounting models for measuring that value. Poor data governance puts your data at risk of a breach. If Big Data is about making money, it is about creating value and value should be placed on the balance sheet as an asset. Your current assets are also known as short-term assets and your noncurrent assets are also known as long-term assets.

Yes!

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