Status: Draft -- Not PublishedWill be live at 09/28/2020 15:48
Briefing Note: Data Monetization – A New Accounting Paradigm?
This briefing note summarizes and captures some reflections from the very thought-provoking remarks from David Hardoon, Senior Advisor for Data and Artificial Intelligence at Union Bank of the Philippines, during the IIF Digital Interchange: the Global Dialogue on Digital Finance.
Stressing that these are complex and challenging issues, and there is much work still be done in developing and improving consistent methodologies for valuing data, this note identifies questions more so than answers. But in tabling the key issues and considerations that warrant further exploration, we highlight:
- Valuation methodologies for data.
- Representing the monetized value of data as an asset on the balance sheet.
- Depreciation or amortization treatments for data as an asset.
- Attribution of revenues and profits to data, and/or to other asset types.
- Cross-border implications.
The IIF will continue exploring these issues with leading thinkers such as David, and it will be a subject for further papers and podcast episodes.