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Data Asset Accounting Principles

  • Accountability Principle: An organization must identify individual who are ultimately accountable for Data and Content of all types.
  • Asset Principle: Data and Content of all types are assets and have characteristics of other assets. They should be managed, secured, and accounted for as other material or financial assets.
  • Audit Principle: The accuracy of Data and Content is subject to periodic audit by an independent body.
  • Due Diligence Principle: If a risk is known, it must be reported. If a risk is possible, it must be confirmed. Data risks include risks related to poor Data Management practices.
  • Going Concern Principle: Data and Content are critical to successful, ongoing business operations and management (i.e., they are not viewed as temporary means to achieve results or merely as a business by-product).
  • Level of Valuation Principle: Value the Data as an asset at a level that makes the most sense, or is the easiest to measure.
  • Liability Principle: There is a financial liability connected to Data or Content on regulatory and ethical misuse or mismanagement.
  • Quality Principle: The meaning, accuracy, and lifecycle of Data and Content can affect the financial status of the organization.
  • Risk Principle: There is risk associated with Data and Content. This risk must be formally recognized, either as a liability or through incurring costs to manage and reduce the inherent risk.
  • Value Principle: There is value in Data and Content, based on the ways these are used to meet an organization’s objectives, their intrinsic marketability, and/or their contribution to the organization’s goodwill (balance sheet) valuation. The value of information reflects its contribution to the organization offset by the cost of maintenance and movement.

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