# 02 — Data-Asset Capitalization & Valuation Workflow

## 1. Workflow Overview

```
┌─────────────────────────────────────────────────────────────────────┐
│              Data-Asset Capitalization & Valuation Map                │
├─────────────────────────────────────────────────────────────────────┤
│                                                                     │
│  ┌──────────┐   ┌──────────┐   ┌──────────┐   ┌──────────┐        │
│  │1.Asset    │──>│2.Cost     │──>│3.Valuation│──>│4.Accounting│       │
│  │  Identify │   │  Aggreg. │   │  Method   │   │  Recognize │       │
│  │  & Confirm│   │  & Measure│   │  Select   │   │  & Measure│       │
│  └──────────┘   └──────────┘   └──────────┘   └──────────┘        │
│       │              │              │              │                │
│       v              v              v              v                │
│  ┌──────────┐   ┌──────────┐   ┌──────────┐   ┌──────────┐        │
│  │5.Disclosure│──>│6.Subseq.  │──>│7.Capital.│──>│8.Data     │        │
│  │  Author   │   │  Measure  │   │  Land &   │   │  Ops &    │        │
│  │          │   │  & Amort.│   │  Audit    │   │  Financing│        │
│  └──────────┘   └──────────┘   └──────────┘   └──────────┘        │
│                                                                     │
│  Basis: IAS 38 (Intangible Assets) / IFRS; data-asset            │
│    capitalization methodology (cost model at initial recognition)  │
└─────────────────────────────────────────────────────────────────────┘
```

## 2. Applicable Scenarios

This workflow applies to transport enterprises (especially transport-investment groups, highway groups, transit groups, port authorities) that recognize data resources as balance-sheet assets per applicable accounting standards (e.g., IAS 38 Intangible Assets under IFRS), achieving accounting recognition and value management of data assets.

## 3. Preconditions

| Input | Description |
|-------|------|
| Data-asset catalog | Completed comprehensive data-asset inventory |
| Cost ledger | Cost records for data collection, governance, development |
| Data-asset governance policy | Internal data-asset management rules |
| Accounting standard | Applicable standard (e.g., IAS 38 / IFRS) & corporate policy |

---

## 4. Detailed Steps

---

### Step 1: Asset Identification & Confirmation

**Objective**: Identify data assets meeting capitalization criteria.

**Guidance:**

**1.1 Three recognition criteria (all required)**

```
Data resource recognized as an asset when ALL hold:

┌─────────────────────────────────────────────┐
│ Criterion 1: Enterprise owns or controls      │
│  · Legal ownership or control of the resource │
│  · Supported by contract / agreement / law    │
│  · e.g., data generated by self-built platform│
├─────────────────────────────────────────────┤
│ Criterion 2: Probable economic benefit        │
│  · Data brings inflow directly or indirectly   │
│  · Clear use case & benefit expectation        │
│  · e.g., improves ops efficiency (cost down)   │
│       or external service (revenue up)        │
├─────────────────────────────────────────────┤
│ Criterion 3: Cost reliably measurable         │
│  · Acquisition / processing / upkeep cost      │
│    independently accountable                  │
│  · Complete cost records & aggregation system  │
│  · e.g., supported by timesheets, invoices     │
└─────────────────────────────────────────────┘
```

**1.2 Transport data assets eligible for capitalization (examples)**

| Data asset | Source | Use | Type |
|---------|------|------|:---:|
| Tolling (ETC) passage data | ETC tolling system | Flow analysis, credit scoring | Intangible |
| Video AI algorithm models | AI platform dev | Event detection, flow analysis | Intangible |
| Road-network GIS data | GIS platform build | Map service, navigation | Intangible |
| Transport big-data platform | Data-middle-platform build | Data-service products | Intangible / Inventory |
| Maintenance-decision model | AI R&D project | Maintenance optimization | Intangible |

---

### Step 2: Cost Aggregation & Measurement

**Objective**: Aggregate all costs incurred to form the data asset.

**Guidance:**

**2.1 Capitalizable cost scope**

| Cost category | Detail | Treatment |
|---------|---------|---------|
| Data acquisition | Sensor purchase, install, integration | Capitalizable |
| Data governance | Cleaning, standardization, quality (labor & tools) | Capitalizable |
| Data development | Algorithm R&D, model training, platform dev | Capitalizable |
| Storage / O&M | Storage, cloud, ops labor (dev phase only) | Capitalizable |
| Routine O&M | Regular maintenance, daily monitoring | Expensed |
| Data refresh | Daily incremental update | Expensed |

**2.2 Cost-aggregation sheet**

| Cost item | Amount (¥10k) | Basis | Voucher |
|---------|:---:|---------|---------|
| Acquisition devices | 500 | Contract + invoice | XXXX |
| Platform dev labor | 300 | Timesheet + payroll allocation | XXXX |
| Algorithm training compute | 100 | Cloud bill | XXXX |
| Governance tools | 50 | Software contract | XXXX |
| **Capitalizable total** | **950** | | |
| Routine O&M | 80 | | (expensed) |

---

### Step 3: Valuation Method Selection

**Objective**: Select an appropriate valuation method for the data asset.

**Guidance:**

**3.1 Three valuation methods compared**

| Method | Principle | Scenario | Transport example |
|------|------|---------|---------|
| Cost | Based on cost to form the asset | Internal-use data | Platform build cost |
| Income | DCF of expected future benefits | Data yielding direct revenue | External data service |
| Market | Based on market transaction price | Active market exists | Data exchange trade |

**3.2 Transport data-asset valuation (income method)**

```
ETC passage data service valuation (income method):

Expected annual data-service revenue: 2.0M
Expected annual data O&M cost: 0.3M
Annual net benefit: 1.7M
Service life: 5 years
Discount rate: 8%

Valuation = Σ(1.7 / (1+8%)^n) for n=1 to 5
          ≈ 6.8M
```

**3.3 Initial-measurement principle**

Per the applicable standard, data assets are initially measured at **cost**:
- Purchased: purchase price + related taxes + expenditures to make ready for use
- Self-developed: development-phase costs meeting capitalization criteria

The capitalized value is based on the **cost method**; valuation methods mainly support decision-making and impairment testing.

---

### Step 4: Accounting Recognition & Measurement

**Objective**: Perform formal recognition; determine account & amount.

**Guidance:**

**4.1 Account selection**

| Use of data resource | Account |
|-------------|---------|
| Self-use / internal | Intangible asset — data resource |
| Held for sale | Inventory — data resource |
| Not recognized as asset | Expensed |

**4.2 Journal-entry example**

```
Dr: Intangible asset — data resource (9.50M)
   Cr: R&D expenditure — capitalized (9.50M)

(self-developed transport big-data platform reaches intended use;
 recognized as intangible asset)
```

**4.3 Recognition timing**

Data assets are recognized when they **reach intended use**:
- Data platform built & accepted
- Data-service product available externally
- AI model validated & meets usage standard

---

### Step 5: Disclosure Authoring

**Objective**: Author the financial-statement notes on data assets.

**Guidance:**

**5.1 Disclosure requirements**

Per the applicable standard, enterprises disclose in notes:

| Disclosure | Description |
|---------|------|
| Data-resource category | By data-asset type |
| Gross carrying amount | Opening / additions / disposals / closing |
| Accumulated amortization | Method & amount |
| Impairment | Test method & result |
| Useful life | Amortization period & basis |
| Ownership restrictions | Pledge / encumbrance if any |

**5.2 Disclosure template**

```
Notes to financial statements — data resources:

I. Data resources recognized as intangible assets

   Category          Opening  Additions Amort. Closing
   ───────────────────────────────────────────────────────
   Transport big-data  0      950      95     855
   AI algorithm model  0      300      60     240
   Total              0      1250     155    1095

II. Amortization note
   Straight-line amortization; useful life based on expected
   use, generally 3–10 years. Big-data platform 10 yrs,
   AI model 5 yrs.

III. Impairment note
   Year-end impairment test; no impairment indicator found.
```

---

### Step 6: Subsequent Measurement & Amortization

**Objective**: Subsequent measurement of data assets, incl. amortization & impairment.

**Guidance:**

**6.1 Amortization methods**

| Method | Description | Scenario |
|------|------|---------|
| Straight-line | Even over useful life | Uniform value consumption |
| Accelerated | More early, less later | Fast-iterating AI models |
| Units-of-production | By usage volume | API-call-based data service |

**6.2 Impairment test**

At least annually:

| Impairment indicator | Test method |
|---------|---------|
| Data obsolete / unused | Impair if usage below threshold |
| Technology substitution | New tech sharply cuts old-asset value |
| Data corruption / loss | Irrecoverable loss |
| Market change | Data-service revenue drops sharply |

---

### Step 7: Capitalization Landing & Audit

**Objective**: Complete the actual capitalization and audit/verification.

**Guidance:**

**7.1 Implementation roadmap**

```
Capitalization roadmap:

Phase 1: Prepare (1–2 mo)
  · Data-asset inventory
  · Cost-ledger build
  · Accounting-policy formulation
  · Process & system build

Phase 2: Implement (2–3 mo)
  · Cost aggregation & verification
  · Asset valuation (external if needed)
  · Journal-entry authoring
  · Internal approval

Phase 3: Audit (1–2 mo)
  · Year-end audit (external auditor)
  · Data-asset special audit
  · Compliance review

Phase 4: Disclose (annual report release)
  · Notes disclosure
  · Management discussion & analysis
```

**7.2 Audit focus**

| Focus | Method |
|---------|---------|
| Recognition criteria | Check satisfaction of the three criteria |
| Cost-aggregation accuracy | Sample timesheets, purchase vouchers |
| Capitalize vs. expense | Check dev-phase split is reasonable |
| Amortization-policy soundness | Check useful-life basis |
| Impairment-test adequacy | Check procedure & conclusion |

---

### Step 8: Data Ops & Financing

**Objective**: Convert capitalized data assets into real financial value.

**Guidance:**

**8.1 Data-asset financing paths**

| Method | Description | Feasibility |
|---------|------|:---:|
| Data-asset pledged loan | Pledge data asset for bank loan | ★★★ |
| Data-asset securitization | Securities backed by future data revenue | ★☆☆ |
| Data-asset contribution | Contribute data asset as capital into JV | ★★☆ |
| Data-asset trade | Trade on a data exchange | ★★☆ |

**8.2 Value release**

- Optimize balance sheet: capitalization increases total assets
- Lower leverage ratio: asset growth improves financial metrics
- Strengthen financing: data asset as credit enhancement
- Drive governance: capitalization forces standardized data management

---

## 5. Roles & Responsibilities (RACI Matrix)

| Activity | Data Gov. Team | Finance | External Audit | CIO | CFO |
|------|:---:|:---:|:---:|:---:|:---:|
| Asset ID | **R/A** | C | I | C | I |
| Cost aggregation | **R** | **C** | I | I | I |
| Valuation | C | **R/A** | C | I | C |
| Recognition | I | **R/A** | C | I | C |
| Disclosure | I | **R/A** | C | I | C |
| Audit cooperation | C | C | **R/A** | I | I |
| Financing push | I | C | I | **R** | **A** |

---

## 6. Key Checkpoints

| # | Checkpoint | Pass standard |
|---|--------|---------|
| CP1 | Asset recognition | List of criterion-meeting assets approved |
| CP2 | Cost aggregation | Costs supported by source vouchers, traceable |
| CP3 | Accounting compliant | External auditor issues unqualified opinion |
| CP4 | Annual disclosure | Data-asset info disclosed completely per standard |

---

## 7. Output Catalog

1. **Capitalizable data-asset list** (.xlsx)
2. **Data-asset cost-aggregation sheet** (.xlsx)
3. **Data-asset valuation report** (.docx)
4. **Data-asset accounting policy** (.docx)
5. **Data-asset ledger** (.xlsx)
6. **Financial-statement notes — data resources** (.docx)
7. **Audit working papers (data-asset section)** (.xlsx)

---

> **Version**: V1.0 | **Date**: 2025-07 | **Basis**: IAS 38 / IFRS
