Valuing information assets in British companies

Abstract

Intangible assets have always caused problems for accounting practice and the traditional view, in the UK, has been that they comprise: goodwill; brands, trade names and registered trade marks; patents and other forms of intellectual property and copyright. Since, in principle, information can be considered in the same way, as it too is typically represented by a collection that is in paper or electronic form and that is available to some or all employees of the company; it is not surprising that information has long been argued by those in the library and information professions to be considered as an asset. However, information managers have found it difficult to persuade senior management that information should be capitalized on company balance sheets. Notes the five factors that have caused a shift in attitudes in theUKand elsewhere: the work of the Hawley Committee; Reuters’ Information as an asset survey; the fashion for knowledge management; publication of the book, Intellectual Capital; and the work of Scandia Insurance Company. Concludes with notes on a proposed research project designed investigate three recommended methods for valuing information and to show how companies spend money on information.