The concepts of R&D expenditures, expensed expenditures and capitalization of intangible assets: In the early stages of an enterprise's R&D project, it is generally uncertain whether it will succeed and whether it can bring economic benefits to the enterprise; At this time, the project expenditure should be expensed, debit "administrative expenses - research and development expenses" and credit various related accounts.
The research stage refers to original planned investigations conducted to obtain new scientific or technical knowledge and understand them. It mainly refers to activities conducted to obtain relevant knowledge. Considering the exploratory nature of the research phase 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 of the enterprise, relevant expenditures during the research phase should be incurred when they occur. All expenses are expensed and included in the current profit and loss (administrative expenses).
Extended information:
Compared with the research stage, it should be that the work of the research stage has been completed, and the basic conditions for forming a new product or new technology have been met to a large extent. . Expenditures incurred during the development phase of an enterprise's own research and development projects can be capitalized and recognized as intangible assets only if they meet the following conditions:
1. Complete the intangible assets so that they can be used or sold in technology
2. Have the intention to complete the intangible asset and use or sell it; ?
3. The way in which the intangible asset generates economic benefits, including being able to prove the use of the intangible asset There is a market for the products produced by the assets or there is a market for the intangible assets themselves. If the intangible assets will be used internally, their usefulness should be proven;
4. There should be sufficient technical, financial and other resource support to complete the project development of the intangible assets and the ability to use or sell the intangible assets;
5. Expenditures attributable to the development stage of the intangible assets can be measured reliably.