All research and development expenses incurred are regarded as current expenses and included in current profits and losses. Using this method mainly focuses on the principle of robustness. Whether R&D can be successful and bring economic benefits to enterprises is very uncertain. As recurrent expenses, enterprises can recover the funds used for research and development in that year, which is conducive to promoting the technological progress of enterprises.
Moreover, the expense treatment has the function of tax saving, which can reduce the cash outflow of enterprises in the current period.
2. Capitalize.
Capitalize R&D expenses when they occur, and then amortize them when R&D is successful. This method assumes that an enterprise has several R&D projects at the same time or for several consecutive years. No matter how big the risk is, some projects can always succeed, forming some intangible assets and making profits.
In this way, all R&D projects are regarded as a whole, and then all the benefits of R&D are matched with all the expenses. This method mainly focuses on the accrual principle.
Extended data:
First, this course accounts for the expenses incurred by enterprises in the process of research and development of intangible assets.
Two, this course should be based on research and development projects, respectively, "expenditure" and "capitalized expenditure" for detailed accounting.
Three, the main accounting treatment of R&D expenditure
(1) If the R&D expenditure incurred by the enterprise in developing the intangible assets by itself does not meet the capitalization conditions, the account (expense) shall be debited; Those who meet the capitalization conditions shall be debited to this account (capitalized expenditure) and credited to such accounts as "raw materials", "bank deposits" and "salaries payable to employees".
(two) the ongoing research and development projects obtained by enterprises in other ways shall be debited to the subjects (capitalized expenditures) and credited to the subjects such as "bank deposits" according to the determined amount. The R&D expenditure incurred in the future shall be treated according to the above (1).
(3) If the research and development project achieves its intended purpose and forms intangible assets, it shall debit the "intangible assets" account according to the balance of the account (capitalized expenditure) and credit the account (capitalized expenditure).
At the end of the period, the enterprise shall transfer the amount of expenses charged by this account to the account of "R&D expenses", debit the account of "R&D expenses" and credit this account (expenses).
Four, the debit balance at the end of this course, reflecting the enterprise's ongoing research and development projects that meet the capitalization conditions.
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