confirmation and measurement of internal research and development expenditure
I. distinction between research and development stages
for research and development projects carried out by enterprises themselves, the research and development stages should be accounted for separately. Regarding the specific division of research stage and development stage, enterprises should judge according to their own actual situation and relevant information.
1. Research stage
Research refers to an original and planned investigation to acquire and understand new scientific or technical knowledge. Examples of research activities include: activities aimed at acquiring knowledge; Applied research, evaluation and final selection of research results or other knowledge; Research on substitutes for materials, equipment, products, processes, systems or services; And the preparation, design, evaluation and final selection of possible substitutes for new or improved materials, equipment, products, processes, systems or services.
2. development stage
development refers to the application of research results or other knowledge to a plan or design before commercial production or use, so as to produce new or substantially improved materials, devices and products. Examples of development activities include: design, construction and testing of prototypes and models before production or use; Design of tools, fixtures, molds and dies with new technology; The design, construction and operation of trial production facilities that do not have the economic scale of commercial production; Design, construction and testing of new or modified materials, equipment, products, processes, systems or services.
ii. confirmation of research and development expenditure
1. research stage expenditure
considering the exploratory nature of the research stage and the uncertainty of its results, the enterprise cannot prove the existence of intangible assets that can bring future economic benefits. therefore, for internal research and development projects, the relevant expenditures in the research stage should be expensed at the time of occurrence and included in the current profits and losses (management expenses).
2. Expenditure in the development stage
Considering that R&D projects entering the development stage are often likely to produce results, if an enterprise can prove that the development expenditure meets the definition of intangible assets and relevant recognition conditions, it can be recognized as intangible assets. Specifically, for internal R&D projects, expenditures in the development stage can be capitalized only if they meet the following conditions, and recognized as intangible assets; otherwise, they should be included in current profits and losses (management expenses).
3. It is impossible to distinguish the expenditure in the research stage and the development stage
It is impossible to distinguish the expenditure in the research stage and the development stage, and it should be expensed when it occurs and included in the current profit and loss (management expenses).
iii. measurement of intangible assets developed internally
the cost of intangible assets formed by internal development activities consists of all necessary expenditures that can be directly attributed to the creation and production of the assets and enable the assets to operate in a manner predetermined by the management. The directly attributable costs include materials, labor costs, registration fees, amortization of other patents and franchises used in the process of developing the intangible assets, and interest expenses that can be capitalized according to the principle of handling borrowing costs.
extended materials
the Development Expenditure item is the expenditure part that reflects the cost of intangible assets that can be capitalized in the process of developing intangible assets. The development expenditure items shall be filled out according to the ending balance of the "capitalized expenditure" detailed account in the "R&D expenditure" account.
The filling method of development expenditure items in the balance sheet is directly based on the balance of the detailed account Capitalized Expenditure in R&D Expenditure.
The account of "R&D expenditure" belongs to the cost category. The debit reflects the R&D expenditure incurred by the enterprise in developing intangible assets by itself, and the credit reflects the expensed expenditure carried forward at the end of the period that does not meet the capitalization conditions and the capitalized expenditure that meets the capitalization conditions and has reached the intended purpose to form intangible assets. The debit balance at the end of the period reflects the expenditures of intangible assets under research and development that meet the capitalization conditions. There are two subsidiary ledgers, Expense Expenditure and Capitalized Expenditure, under the general ledger.
according to the above introduction, there is no balance in the "expensed expenses" sub-ledger at the end of the period, and the balance is carried forward to "management expenses". Only the "capitalized expenses" sub-ledger has the ending debit balance. That is, the development expenditure reflects the research and development expenses that have not been carried forward to intangible assets in the current period and the previous period-capitalized expenditure.
Baidu Encyclopedia-Development Expenditure