China: Implemented Guidelines on Data Asset Valuation

On 1 October 2023, the China Appraisal Association (CAS) implemented the Guidelines on Data Asset Valuation. They are designed to standardise the evaluation of data assets, ensuring compliance with legal and professional standards. The Guidelines cover various aspects of data asset assessment, emphasizing independence, objectivity, and confidentiality. Further, they address the unique characteristics of data assets, including non-entity, dependence, shareability, processability, and value variability. Different valuation methods such as the income method, cost method, and market method are explained with a focus on their application and considerations. Disclosure requirements for valuation reports are outlined, including data quality evaluations, application scenarios, and methodologies. Overall, these guidelines aim to promote consistency and transparency in data asset evaluation practices. They were developed under the guidance of the Chinese Ministry of Finance.