Valuing Information

To value data we must look at its information content.  What we really do is value information.  Information is intangible intellectual property (and its tangible form is in the data).  Valuing information “assets" is important to make the case for investment, governance, management, etc. in our organizations and to executives.  No one doubts that information (and hence its recorded realization) is of value and necessary to the running of an enterprise.  Notwithstanding that the benefits stemming from investments are hard to quantify, valuation is a worthwhile and necessary exercise, but it does not have to appear on the balance sheet to be recognized as of value.

As we think about this question, we must clearly establish which meaning of asset we are using, the accounting concept, or a more general meaning, namely, something of value.  In accounting, something is put on the balance sheet as an asset because the expenditure benefits (i.e., helps to generate income in) future time periods. (And perhaps, to a lesser extent, to provide a valuation for the company.  However, that is not always accurate because it is based on historical costs, and not current values).  It is simply a mechanism to provide somewhat more accurate reporting of profit and loss in a given (future) time period.

  I am reminded of an article written by James Hekimian (he comes up first on a Google search) entitled "Putting People on the Balance Sheet." I think it was published in the Harvard Business Review back in the 1960s when I had him as an accounting professor at MIT.

  Your point is well taken about information needs to be managed with appropriate organizational arrangements similar to how we manage human resources, which we don't call "human or people assets."  When a company making a takeover bid seeks to value another company they certainly consider the quality, etc. of the work force.  That is not reflected on the balance sheet.  Similarly, they should be considering the value, quality, availability, etc. of the information resources and their IT infrastructure when making a valuation for a possible takeover.