Is Content an Asset

Yes, content is an asset. But it is not tangible asset. It is intangible asset. It is the part of digital assets. There are lots of digital asset like your online business brand name, domain name, your company's logo and other software assets.

What are the Proofs of Content as Asset 

1. Contents inflows  Incomes 

You know that an asset is the resource which which inflows the income in your business's pocket. If you are the creator of audio, video and text contents, you can earn money through advertisement. I remembered many days, I did not work during my heavenly mother's medical treatment. During that time, my old written contents generated income every day for me. Without me, it has the power to generate income. Not just advertising income, I can sell its copies in the market. I can give it as free gift to the winner of my test instead of giving cash gift.

2. It has Depreciation

Yes, your contents will have depreciation. Depreciation value depends on the topic. Which is your content topic. If these are the news type content. It will have high rate of depreciation. People will not interest to read or watch 20 years old news. If it is educational content with high quality content, it will be evergreen. For example I wrote, one content "Journal entries examples" 5 years ago, still it is giving me good income. It means, it has very low rate. Sometime, earning increases than past, it means, sometime it will have appreciation like buying of land. But almost all the contents have depreciation due to changes in education, new inventions and new reading and watching habits of audience.

3. It has Maintenance Expense 

Like building or other business asset,  it has also maintenance expense. We have to pay the advertising expenses for promote it. We have to write new contents for saving the asset of old contents. We have to pay website's domain name and hosting charges. We have to keep staff for editing and adding internal links of old contents. We have to pay the expense for updating the development of  website and mobile site. So, it has maintenance expense

Should Contents Asset Show in Balance Sheet

Yes, you can show it in the balance sheet if you have correct estimation of its current value if today, I will sell it what amount, I will get from it. Because to estimate it is difficult, some content writer do not show it in their balance sheet. One second difficulty is to calculate correct depreciation of contents. Every content is unique. For example, I wrote more than 3000 text contents. Every content's depreciation rate will be different. So, if I have bought this asset, then to deduct correct depreciation is also difficult. 






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Accounting Education: Is Content an Asset
Is Content an Asset
Accounting Education
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