## 1.11 Identifying, valuing, and reporting government data assets ## Source details **Canonical URL:** [1.11 Identifying, valuing, and reporting government data assets](https://www.imf.org/-/media/files/data/statistics/gfsm/global-consultations/proposed-recommendations-gfsm-2014-update-1-11-identifying-valuing-and-reporting-government-data-as.pdf) ## Other formats - [Markdown version](/-/media/files/data/statistics/gfsm/global-consultations/proposed-recommendations-gfsm-2014-update-1-11-identifying-valuing-and-reporting-government-data-as.pdf.md) - [Structured JSON version](/-/media/files/data/statistics/gfsm/global-consultations/proposed-recommendations-gfsm-2014-update-1-11-identifying-valuing-and-reporting-government-data-as.pdf.json) --- ### Summary of proposed recommendations - The proposed recommendation is to expand the asset boundary under the GFSM 2014 to include data as an asset, under (produced) fixed asset, aligning with the draft 2025 SNA. - Data assets include those that are produced on an own-account basis or purchased on the market, intended for repeated or continuous use for a period greater than one year. - Government data assets can broadly be considered to include (but are not limited to) data gathered to enhance the delivery of public services over longer periods, as well as official statistics made freely available to the rest of the economy. - Although the government may not derive direct financial benefit from freely available data, the production and dissemination of the data represents government output. - A key proposal is to conduct further research (through a discussion note) to more fully consider the implications of including data in the asset boundary of the updated GFSM and application of the draft 2025 SNA on fiscal statistics. ### Background and issues - In GFSM 2014 and the 2008 SNA, data are not recognized as a standalone asset; they are considered in the valuation of other intellectual property products such as databases. In valuing database assets, costs associated with preparing data in a format that conforms to a database are included, but costs associated with acquiring or producing the data are excluded and recorded as intermediate consumption. - The draft 2025 SNA introduces data as a standalone asset and defines data as “information content that is produced by accessing and observing phenomena, and recording, organizing, and storing information elements from these phenomena in a digital format, which provide an economic benefit when used in productive activities” (draft 2025 SNA, para. 22.22). - To realize economic benefits, producers must be able to “extract insights and knowledge via the analysis of the data” (draft 2025 SNA, para. 22.24) for more than one year or by selling the data. Consequently, non-digital data, ancillary data inputs, or data used repeatedly for less than a year do not meet the characteristics of data assets. - All sectors, including the government sector, can produce and use data in production. Total output of data includes own-account production and purchases. Government-produced data may include publicly available and non-publicly available data; both contribute to government output. - Delineation between government administrative data and data assets requires further exploration (for example, tax authority data used to improve tax collection efficiency or assess tax policy impacts may provide future economic benefits and could be considered data assets). - The draft 2025 SNA treats data and databases as a single asset class because of similar production inputs and difficulty in separate measurement. Draft 2025 SNA (paras. 11.115-11.117) recommends a sum of costs approach for valuing own-account data production across all sectors; data and databases for sale should be valued at market price (draft 2025 SNA, para. 11.118). - Footnote clarification: Observable phenomena (OP) are generally considered outside the asset boundary of the SNA for practical reasons; OP are regarded as nonproduced and have no value except if purchased. Explicit purchases of OP are considered either purchase of a service or payment of rent for the right to access specific OP; OP is not recorded as an asset in the draft 2025 SNA. ### Proposed recommendations (detailed) - Expand the asset boundary under GFSM 2014 to include data, in line with the draft 2025 SNA, with guidance reflecting these broad principles: - Government data assets include own-account data assets and purchased data for use in production, repeatedly or continuously for more than one year. Costs incurred on data used in less than one year should be recorded as use of goods and services expense. - Own-account data assets produced by the government sector should be valued using the sum of costs approach taking into consideration the draft 2025 SNA guidance on the inclusion of return on capital. The Handbook on Measuring Data in the System of National Accounts should be consulted for detailed methodological guidance in valuing these data assets. - Compensation of employees (remuneration of employees), use of goods and services and consumption of fixed capital incurred during own-account capital formation of data should be excluded from expense and recorded as a component of the cost of the acquisition of the produced nonfinancial asset. - Both publicly available data and non-publicly available data produced by the government that are considered data assets should be valued using the sum of costs approach. Data and databases purchased by the government should be valued at their market price. - Conduct further research (through a discussion note) to more fully consider the implications of including data in the asset boundary of the updated GFSM and application of the draft 2025 SNA on fiscal statistics. Research topics include, but are not limited to: - The delineation between government administrative information and data assets. - Government costs associated with the production of data assets. - Interactions between sub-sectors of the public sector. - Practical compilation challenges and where countries may need to rely on national accounts estimates or consider further research. ### Rationale for the proposed recommendations - The recommendations aim to harmonize the updated GFSM with the 2025 SNA, a key objective of the GFSM 2014 update process. - The recommendations consider issues unique to the government sector, particularly in the production and dissemination of freely available official statistics, which can constitute significant data assets. - They account for differences in the treatment of own-account capital formation in GFSM 2014 relative to the 2008 and draft 2025 SNA. - The proposed recommendations focus primarily on conceptual aspects of expanding the asset boundary to include data. Additional compilation guidance is being developed in the Handbook on Measuring Data in the System of National Accounts; further clarification may be needed for practical implementation in the public sector. ### Proposed text for GFSM update (select draft 2025 SNA paragraphs recommended for introduction) - The draft 2025 SNA text in paras. 11.114-11.118 and 22.21-22.32 should be introduced into the updated GFSM, revising current GFSM text in para. 7.64, 7.69-7.70 and 8.40. The GFSM drafters and editors should consider introducing additional text discussing government data assets and to reflect the proposed recommendations. - Quoted draft 2025 SNA paragraphs recommended for inclusion: - 11.114 Data and databases consist of electronic files of data, including the information content (i.e., the data themselves), organized in such a way as to permit resource-effective access and use of the data, either for own use in production for more than one year, or for sale as an item or for sale by means of a licence to access the information contained. The standard conditions apply for when an own-use database, a purchased database or the licence to access a database constitutes an asset. - 11.115 Data and databases are conceptually distinct types of intellectual property products, but they are produced using similar inputs and measuring them separately is often difficult. Moreover, transactions in databases generally include the value of the data stored in the database. Data and databases are therefore combined into a single detailed class of intellectual property product. The creation of data and databases will generally have to be estimated by a sum of costs method. (See paragraphs 22.21 to 22.32 for more information.) - 11.116 The cost of the database management system (DBMS) used should not be included in the costs of creating a database, but be treated as a computer software asset unless it is used under an operating lease. The cost of preparing data in the appropriate format is included in the cost of the database but not the cost of acquiring or producing the data (see below). Other costs will include staff time estimated on the basis of the amount of time spent in developing the database, an estimate of the capital services of the non-financial assets used in developing the database and costs of goods and services used as intermediate consumption. - 11.117 The main cost elements related to data consist of the costs of planning, preparing and developing a data production strategy; the costs associated with accessing, recording and storing information embedded in observable phenomena, which may include, but is not limited to, explicit purchases related to accessing observable phenomena or already produced data; and the costs associated with processing and cleaning the data to allow for incorporation into a database and subsequent use in productive activities. - 11.118 Data and databases for sale should be valued at their market price, which includes the value of the information content. If the value of a software component is available separately, it should be recorded as the sale of software. --- _Source: https://www.imf.org/-/media/files/data/statistics/gfsm/global-consultations/proposed-recommendations-gfsm-2014-update-1-11-identifying-valuing-and-reporting-government-data-as.pdf_