The effects of intangible fixed assets on financial performance: A practice in technology companies in Borsa İstanbul (BIST)

Nowadays, Intangible Fixed Assets have become more important with the rise of Information Economy. Intangible Fixed assets are economic assets which do not have tangible properties and can be determined and controlled easily and can utilize future economy. The number of Intangible Fixed assets among business assets have been increasing day by day and accordingly they have gained importance for the development of businesses. Meanwhile registration, evaluation and reporting of intangible fixed assets and the effects of them on the business financial performance is another important issue. In this study, general information on intangible fixed assets and the difference between intangible fixed assets and intellectual capital have been detailed. Besides, Registration, evaluation and reporting methods of intangible fixed assets have been referred and 14 Technology and Informatics Companies which are in Technology (XUTEK) Index, dealt in Borsa Istanbul have been examined. In order to determine financial performances, financial rations have been determined and these ratios have been calculated and applied in TOPSIS (Technique for Order Preference by Similarity to Ideal Solutions). The research results show that according to the companies' financial performance rank, companies which have high intangible fixed assets' turnover rate, profitability and development ratio and the companies which have more fixed assets and intangible fixed assets have the best performance in then-current year. Keywords : Intangible Fixed asset, TMS (Turkish Accounting Standards) 38, TOPSIS (Technique for Order Preference by Similarity to Ideal Solutions), Financial Performance, Borsa Istanbul Technology Companies.