TAS 38 ACCOUNTING OF INTANGIBLE ASSETS

Abstract

Rights that play an active role in increasing the profitability of the business, provide a competitive advantage to the business, but are not physically present are called intangible assets. In today's conditions, as digitalization increases, intangible assets in the assets of businesses are becoming increasingly important. In addition to physical assets, intangible assets are also used by businesses in order to continue their existence and to continue their activities uninterruptedly in the conditions of increasing commercial competition. Assets such as patent, copyright, import quota, software program, film, customer and supplier network and connection, distribution system, right to use name, right to operate, market dominance can be given as examples of intangible assets. By applying valuation to these assets in line with the market conditions, it is important that the assets are included in the financial statements correctly. Among these resources used by businesses, the assets that should be included in the class of intangible assets and their accounting records, valuation, depreciation, replacement expense, application of impairment are regulated in detail in TAS 38 Intangible Assets Standard. In this study, the accounting procedures and principles of the assets in the group of intangible fixed assets acquired by businesses in accordance with the provisions of TAS38 Intangible fixed assets standard are examined. Firstly; Basic information about the concepts enumerated in the TMS38 standard was given, then; Applications related to valuation, accounting, depreciation and other transactions of intangible assets are explained and application examples are given.