Accountability of Data Asset Accounting Principles
An organization must identify individuals who are ultimately accountable for the 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 audits 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 for 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 in Data Asset Accounting Principles
There is a 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.
