Data as an intangible asset accounting: the texts
The short answer
IAS 38 does not recognize self-made customer lists as intangible assets. Treasury Regulation 1.197-2 names customer information bases as intangibles but excludes those created by the taxpayer from amortization. This page reports text only, not tax or accounting advice.
These texts treat data a company built for itself differently from data it bought. That split is the whole question.
What does IAS 38 say about an intangible asset?
IAS 38 is the international accounting standard for intangible assets. The IFRS Foundation's page says it covers two kinds. One kind can be separated out. The other arises from contractual or other legal rights.
The page says internally generated goodwill is not recognised as an asset. It says the same for these self-made items: brands, mastheads, publishing titles, customer lists and similar items.
Development spending that meets set criteria can be recognised as an intangible asset. Research spending is not. It is expensed. I read the IFRS Foundation summary page. I skipped the full standard, which is sold.
Does IAS 38 count a data corpus as a customer list?
The IAS 38 wording names customer lists. It does not name a corpus of emails, tickets or chat. I found no source that puts such a corpus on either side of that line.
Whether a given dataset counts as a similar item to a customer list is an accounting judgment. The company's auditor makes that call.
What does the US tax regulation say?
Treasury Regulation 1.197-2(a) allows a deduction over 15 years. It applies to the capitalized cost of an amortizable section 197 intangible. Amortization means spreading that cost over the years.
Paragraph (b)(4) defines an information base. It includes business books and records, operating systems and other information bases. The customer-related kind covers lists or other facts about current or future customers.
As a rule, the regulation excludes a section 197 intangible that the taxpayer created. Three exceptions are named:
- licenses, permits and governmental rights
- covenants not to compete
- franchises, trademarks and trade names
Does it matter whether the data was bought or built?
My reading is that it does. The IAS 38 wording speaks of internally generated items. The tax exclusion speaks of intangibles created by the taxpayer.
No source I read applies either text to bought data. I did not research how bought data is treated. My sale-in-acquisition page covers the deal side.
What does a company that licenses data out need to know?
The texts above cover how a company records data it holds. Revenue from licensing it out is a separate question. My revenue page covers it. My valuation page covers what buyers say data is worth. None of it is an accounting valuation.
Talk to a tax professional about your own situation.
Vaultfish helps you run the process. We are not lawyers and this is not legal advice. If you need counsel who knows this area, we can point you to one. Ask for a referral
