Accounting entries for self-developed intangible assets
(1) When R&D expenditure occurs,
Debit: R&D expenditure-expensed expenditure (research expenditure and development expenditure that do not meet capitalization conditions)
R&D expenditure —— Capitalized expenditure (development stage expenditure eligible for capitalization)
Loans: bank deposits/raw materials/wages payable to employees.
(2) At the end of the period, the spent R&D expenses are transferred to the current management expenses.
Borrow: management fee
Loan: R&D expenditure-expense expenditure
At the end of the period, the debit balance of R&D expenditure is listed as "development expenditure" (non-current assets) in the balance sheet.
(3) When the intangible assets reach the usable state, the R&D expenditures that meet the capitalization conditions are transferred to the cost of intangible assets.
Borrow: intangible assets
Loan: R&D expenditure-capitalized expenditure
What is R&D expenditure?
Refers to the depreciation of assets used in the research and development process, the consumption of raw materials, the wages and welfare expenses of the personnel directly involved in the development, the rent and borrowing expenses incurred in the development process, etc. An account that belongs to the nature of cost.
What is intangible assets?
Refers to identifiable non-monetary assets without physical form. Intangible assets are also divided into broad sense and narrow sense. Intangible assets in a broad sense mainly include monetary funds, long-term equity investment, financial assets, patent rights, trademark rights and so on. Because they don't have physical entities, but show some legal rights or technologies. But accounting usually regards intangible assets as a narrow sense, that is, patent rights and trademark rights are called intangible assets.