German government examines whether data has to be shown as intangible asset in the balance sheet

On May 26th, the German government made a decision on the data strategy. A position paper outlines how Germany can keep up with the global data competition.

The position paper primarily focuses on small and medium-sized enterprises. The government wants to make it more attractive for them to work with data.

The publication reads:

“It is particularly important for SMEs to find ways to make the preparation, structuring and analysis of their own data more attractive. It has to be examined whether data as an intangible company asset should be shown as asset in the balance sheet in order to create a different understanding of the economic value of data. This cannot exclusively consider the pure mass of data; the quality of the data and the possible uses in the application context are also relevant.”

Thus, in the future, contextual financial data valuation, which has been recommended on this blog several times, will probably play an increasingly important role. The complete position paper can be read here

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