In today's rapidly developing digital economy, data has become an important engine driving social progress and enterprise development. From being initially regarded as part of intangible assets to now

In today's rapidly developing digital economy, data has become an important engine driving social progress and enterprise development. From being initially regarded as part of intangible assets to now becoming an independent item in the enterprise's balance sheet, the entry of data assets into the balance sheet (hereinafter referred to as 'data entry') is undoubtedly a milestone achievement.

I. What is the entry of data assets into the balance sheet?

1.1 Entry of Data Assets into the Balance Sheet

The entry of data assets into the balance sheet, as the name implies, refers to the process of formally recording data resources that meet certain conditions as an asset item of the enterprise in the balance sheet. This process is not only an important sign of the enterprise's digital transformation, but also a major leap in the capital market's recognition of the value of the digital economy. On August 21, 2023, the Ministry of Finance issued the 'Provisional Regulations on Accounting Treatment of Enterprise Data Resources' (hereinafter referred to as the 'Provisional Regulations'), which provided a clear legal basis and accounting norms for the recognition of data resources as assets.

1.2 Legal and Accounting Basis

The process of data entry into the balance sheet involves not only legal issues but also the requirements of accounting standards. The Provisional Regulations classify the data resources to be entered into the balance sheet into two categories: 'data resources used by enterprises' and 'data resources held by enterprises in their daily activities, with the ultimate purpose of sale', and provide accounting treatment standards for both categories. For the former, enterprises should handle them in accordance with the 'Enterprise Accounting Standards No. 6 - Intangible Assets'; for the latter, they should refer to the 'Enterprise Accounting Standards No. 1 - Inventory' for accounting treatment.

Two, the current situation of data asset listing

2.1 Listing Practice

2024 is regarded as the 'Year of Data Asset Listing' by the industry. According to the report of the 'Financial Accounting Monthly' in the first quarter of 2024, 25 A-share listed companies have successfully carried out data asset listing operations, marking the formal launch of the practice of data asset listing. According to the 'China Enterprise Data Asset Listing Status Tracking Report', in the first quarter, among the more than 5,000 enterprises listed on the A-share market, 18 listed companies disclosed data resources in their first quarter financial statements, involving a total amount of 103 million yuan, of which 0.79 billion yuan was intangible assets.

The report shows that 8 private enterprises such as Wuhan Feiliu Intelligent Technology Co., Ltd. and Chengmu Technology (Zhuhai) Co., Ltd. have vigorously promoted financing after listing data assets. Among them, 4 enterprises have successfully obtained bank credit. For example, in April, Zhongke Urban Brain, Xian Du Data, and Jiangsu ZhuBaJie Network Enterprise Service Co., Ltd. respectively obtained 8 million yuan, 5 million yuan, and 10 million yuan loans from Jiangsu Bank, and Chengmu Technology obtained a 2 million yuan loan from the Zhuhai Branch of the Industrial and Commercial Bank of China.

At the same time, city investment companies and similar city investment state-owned enterprises are also very active in 'listing'. Since the series of policies on data elements and data resources have been clarified, local governments at all levels have successively established data groups, data operation companies, and data asset management companies, etc., to register and manage data assets including public service data, state-owned enterprise business data, and specific industry data.

According to the report, 22 city investment companies and 28 similar city investment state-owned enterprises have disclosed the data asset listing situation, and some enterprises have already used the listed assets for financing activities. From the perspective of data asset types, the report shows that the listed data assets of 50 enterprises are mainly traffic data and public data.

2.2 Listing Types and Scale

From the perspective of listing types, the first batch of listed enterprises are mainly composed of intangible assets, inventory, and development expenditures. Among them, the scale of listed intangible assets and development expenditures is mainly at the level of tens of millions, while the scale of listed inventory is mostly at the level of hundreds of millions. It is noteworthy that the two enterprises with a larger listing scale, CITIC Heavy Industry and Jinlong Auto, both chose to list data assets as inventory, but subsequently canceled the listing.

2.3 Industry and Enterprise Attributes

In terms of industry distribution, the first batch of listed enterprises is not limited to information technology companies, but covers a variety of traditional fields such as iron and steel, automobiles, ports, and electricity, showing the wide applicability of data assets being listed. However, from the perspective of state-owned assets, the proportion of private enterprises listed is much higher than that of state-owned enterprises, which may be related to the fact that state-owned enterprises mainly use their data assets internally and it is difficult to calculate the cost.

2.4 Distribution of geography and market value

Geographically, the first batch of listed enterprises are mainly concentrated in coastal first-tier cities such as Beijing, Shandong, and Zhejiang. From the perspective of market value, the total market value of the first batch of listed enterprises is generally not high, and most are concentrated in information technology and other data-intensive industries. Although the current market value and number of listed enterprises are limited, there is already data indicating that with more enterprises beginning to plan for the listing of data assets, the total scale of data assets in the future is expected to increase significantly.

III. Beneficial analysis of data asset listing

3.1 Enhancing enterprise market value

The listing of data assets helps to enhance the market value of enterprises. By incorporating data resources into the financial statements, enterprises can more clearly demonstrate the economic value of their data assets, enhancing investors' confidence in the future development potential of the enterprise. Especially in the era of the digital economy, data has become an important part of the core competitiveness of enterprises, and the listing of data assets helps to enhance the market valuation and financing capacity of enterprises.

To know that the listing of data assets is not only a revolution in enterprise asset management but also the key to monetizing data value. Through this initiative, enterprises can trade and circulate the data assets they own, realize the direct monetization of data, and open up a new source of income for the enterprise. This transformation not only enriches the profit channels of the enterprise but also enhances the market competitiveness of the enterprise.

Furthermore, the listing of data assets as a direct reflection of an enterprise's strength undoubtedly enhances the confidence of banks and other financial institutions in the enterprise. When assessing enterprise credit and credit limit, data assets have become an important consideration factor, helping enterprises to obtain more and more preferential financial support. This enhancement of trust lays a solid financial foundation for the future development of the enterprise.

As an innovative financing method, data asset collateralized loans have opened up a new path for enterprise financing. Enterprises can apply for loans from banks by using their owned data assets as collateral to solve the problem of capital shortage. This financing method not only reduces the cost of enterprise financing but also improves the efficiency of financing, injecting new vitality into the development of the enterprise.

Even more remarkable is the rise of data asset equity participation. Enterprises can convert their data assets into equity or shares, making them one of the shareholders of the enterprise and sharing the results of enterprise development. This transformation of equity not only enriches the equity structure of the enterprise but also brings more strategic investors and partners to the enterprise, jointly promoting the development of the enterprise to a higher level.

3.2 Promoting digital and intelligent transformation

The listing of data assets as an important driving force for the digital and intelligent transformation of enterprises. By clarifying the economic value of data assets, enterprises can pay more attention to the accumulation, integration, and application of data resources, thereby accelerating the pace of digital and intelligent transformation. At the same time, the listing of data assets also helps enterprises optimize resource allocation, improve operational efficiency and management level, and lay a solid foundation for the sustainable development of enterprises.

3.3 Promoting the Construction of the Data Element Market System

The inclusion of data assets on the balance sheet is of great significance for promoting the construction of the data element market system. By incorporating data resources into financial statements and carrying out standardized management, it helps establish and improve systems for data property rights, transactions, and circulation, promoting the healthy development of the data element market. At the same time, the inclusion of data assets on the balance sheet also helps strengthen the protection and utilization of data resources, promote the sharing and cooperation of data resources, and provide strong support for the development of the digital economy.

3.4 Strengthening Data Compliance and Security Management

The inclusion of data assets on the balance sheet requires enterprises to strengthen data compliance and security management. During the inclusion process, enterprises need to comply with the requirements of relevant laws and regulations and accounting standards, establishing and improving data compliance management mechanisms and security management systems. This not only helps enterprises avoid legal risks and data leakage risks, but also helps to enhance the enterprise's data governance capabilities and risk management level. By strengthening data compliance and security management, enterprises can better protect the safety and stability of data resources, providing a strong guarantee for the creation of long-term data value.

Conclusion:

With the continuous development of the digital economy and the continuous improvement of laws and regulations, the inclusion of data assets on the balance sheet will usher in a broader development prospect. State-owned enterprises, high market value enterprises, and enterprises with abundant data resources are expected to join the ranks of data assets on the balance sheet in the future, injecting new vitality into the development of the data asset market. At the same time, enterprises will also continuously explore and improve the management, evaluation, and trading mechanisms of data assets, promoting the maximization of data asset value.

References:

1. Wei Xiaoyi. 18 A-share listed companies try out data assets on the balance sheet for the first time in the first quarter [N]. Economic Reference, 2024-08-02 (003).
2. Huang Yuxin, Luo Danglun. Data Assets on the Balance Sheet: Current Status, Challenges and Countermeasures[J/OL]. Monthly Finance, 1-6 [2024-08-06].