The analysis of impairment of assets standard in terms of tax legislation and a practice in İstanbul Stock Exchange

It is an important fact that the information which is presented in the financial tables of the entities should be accurate, reliable, fair value and apprehensible. The standard of impairment of assets sets the principles that should be carried in order to provide the assets of the entities not to be shown in their financial tables with an amount which is more than the recoverable amount in accordance with the precautionary principle. With the standard, new regulations which are not carried in our country so far, come into force. According to the standard, it will be possible to make provisions for both property, plant, equipment and intangible assets together with the assets like goodwill.In our work, transactions which entities should do as a part of this standard, accounting entries and their effects to tax base are brought up the matter and samples regarding implementations of publicly traded companies in Istanbul Stock Exchange (ISE) are also mentioned.There are some difficulties in the implementation of the standard because entities need to use some technical information for the determination of the recoverable amount of the assets. Therefore, in order to use the standard without a problem, skilled personnel should be employed. Also it is necessary to make a change in the Uniform Chart of Accounts in order to pass entries of the loss of impairment according to the standard.