Online depreciation – a challenge for XXI century accountants

What is depreciation? What is online depreciation? Why are they different?

Let’s say that you buy a car for £20’000.  So after buying it, the value is £20’000. Easy. Also, if after one year you try to sell it, the price would be lower than £20’000. It’s a used car. Every year the value of the car goes down. This change in value is depreciation. In the physical world, most things lose value over time. But online content is different. It does change value over time but in a different way. An online tutorial about making pictures of fireworks will be more valuable around festivities, like the 4th of July in the US.

This article is a way to engage you, to think about this exciting challenge for accountants in the XXI century.

Some ideas on what needs to be part of an online depreciation formula for online content

Here is a list of all the metric which can change the value of online content. In no specific order

  • Number of readers per day (hours, week, month or year)
  • How much money each visit generates
  • Number of comments or interactions from readers
  • Position in the most important search engines
  • Current date and time
  • Author reputation (something that changes over time)
  • Blog or newspaper reputation
  • Language of the content
  • Price of the content if not free
  • Latest update date
  • Quality of the content
  • Amount of connection pointing to that page from other websites
  • and others

The intro and the list should be enough to kick start your brain.

Let me know of other elements to add; or a formula proposal; or a simple way to measure the value of online content.

Google, please help accountants come with a good solution.

Why Google? Google needs to have an algorithm to calculate the value in money of a page for their advertisement business. Google also has one formula to order the result of a search based on the estimated value of the page for the person searching.

Do you have an idea for a simpler formula

I am interested to hear about your views and ideas.

Have a great day, have a great life

References

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