R&D expenditure accounting method 1
Abstract: Project R&D has become an important part of the enterprise. In view of this, this article first analyzes the shortcomings of the current R&D expenditure accounting. Improved ideas and measures for accounting of project R&D expenditures are proposed.
Keywords: Accounting methods to analyze R&D expenditures
1. Accounting information requirements for R&D expenditures
1. Investors
R&D projects At present, it is receiving more and more attention in some enterprises, because a successful R&D project can create relatively generous profits for the enterprise. It can be seen that R&D projects are also investors.
Relevant scholars have confirmed that accounting information on R&D expenditures has value relevance.
2. Enterprise managers
Enterprises have gradually become the main targets of national R&D investment, especially some high-tech enterprises.
Therefore, the amount of investment and the intensity of R&D expenditures used by enterprises in project research and development have also gradually expanded.
Project R&D expenses are a very rare resource. As managers of enterprises, they are paying more and more attention to the effectiveness and efficiency of R&D expenditures.
Therefore, let the managers of the enterprise master the overall R&D expenditures and detailed expenditures of all projects, so that the intensity and cost of R&D expenditures can be appropriately arranged, so that the efficiency of project R&D expenditures can ultimately be significantly improved.
3. Taxation Department
According to the latest tax law, all domestic enterprises, foreign-funded enterprises, colleges and universities or scientific research institutions, as long as their financial systems are sound and audit and tax collection is implemented, then The investment amount required for the products, patents, processes or technologies developed by these enterprises or departments, on the basis of 100% deduction, can also be added before corporate income tax at 50% of the actual amount incurred in the year. Calculate deduction.
Therefore, the relevant tax authorities must provide enterprises or scientific research departments with the appropriate scope of R&D expenditures or very accurate R&D expenditure accounting information.
2. Shortcomings in the current accounting of R&D expenditures
The latest accounting standards stipulate that all expenditures incurred by various R&D projects within the enterprise during the R&D process should be recorded in After collection in the current period, it will be included in the profit and loss. When the expenses are incurred, it will be recorded as: Debit: R&D expenditure - expensed expenditure; Credit: raw materials, employee wages payable and other related accounts; At the end of the period, it will be recorded as: Debit: administrative expenses, Credit: R&D expenditure - expensed expenditure?; Expenditures in the research phase are recognized as intangible assets under certain conditions, that is, capitalized.
When expenditures are incurred, they are recorded as: debit: R&D expenditures - capitalized expenditures, credits: bank deposits, raw materials and other related accounts; after the R&D project reaches its intended use and forms intangible assets, it is recorded as: debit: Intangible assets - XXX, credit: R&D expenditures - capitalized expenditures?.
This regulation has the following two problems and shortcomings:
(1) It is impossible to distinguish which is the research stage and which is the development stage;
(2) There are no clear and detailed provisions on the accounting scope and disclosure.
3. Ideas and measures to improve the accounting of R&D expenditures
From the above analysis, it can be clearly seen that for the drastic reform of project R&D expenditures, the methods used It is to carry out capitalization and expense at the same time, but there must be clear boundaries between expense and capitalization.
The following describes the reform ideas and measures from five aspects.
1. The boundary between expense and capitalization of R&D expenses should be clear
Article 7 of "Accounting Standards for Business Enterprises No. 6 - Intangible Assets" has such a clause, any Expenditures on research projects within the scientific research department or the enterprise must be strictly distinguished from expenditures in the research phase and expenditures in the development phase.
When the project is in the research stage, its R&D expenditures need to be expensed and included in the current profit and loss. In accounting, R&D expenditures need to be included. In the end, the expenditures that are expensed are transferred to the "administrative expenses" account. In the latest Expenses are listed in the profit and loss for a period.
All expenses incurred during the development phase of a research and development project will be treated as intangible assets if they meet the conditions.
That is, this part of the research and development expenses will be recognized as an expense in the early period, and it will be recognized as an asset in the current period.
However, unlike accounting standards, the provisions of the corporate accounting system are not clear, and according to tax regulations, no matter whether it is the expenses incurred by the scientific research department or the enterprise during the project research phase or the expenses incurred during the project design phase All can receive the benefits of preferential policies. For those that have not become intangible assets, according to regulations, 50% of the project research and development expenses will be deducted on the basis of actual deductions; for those that have become intangible assets, based on the intangible assets One hundred and fifty percent amortization of assets.
The total amount of discounts ultimately enjoyed by enterprises under these two treatment methods is the same, but there are temporal differences in the annual pre-tax tax reduction amount.
At present, for the sake of tax planning, many enterprises include project research expenses and project development expenses under the project technology development expenses in project management expenses, and they are paid as expenses in one lump sum in the current year. Deduction of 150% does not make a proper distinction between the project development stage and the project research stage.
Judging from the analysis of the research phase expenses and development phase expenses incurred by the enterprise, the development phase expenses account for a larger proportion, especially during the trial process of raw materials, molds and molds used for intermediate tests and product trial production. Purchase fees for prototypes, samples and general testing methods, inspection fees for trial products, etc.
Many of the expenses here should form intangible assets, and according to regulations, they should be amortized at 150% of the cost of forming intangible assets.
If the amortization period of intangible assets is ten years, only 15% can be amortized each year.
Therefore, tax policies should further clarify the principles of dividing the two stages to reduce the room for enterprises to operate at will.
2. Determine the scope of accounting for R&D expenditures
The author recommends that according to the rules of cost accounting, R&D expenditures should be set into three categories: labor, materials, and expenses.
Labor costs mainly include the wages and benefits of R&D personnel; Materials mainly include the fuel, materials and power costs consumed during the project research and development process; Expenses include new processes for newly developed products Regulation formulation fees, design fees, translation fees for technical data related to research and development, library materials fees; various other fees, etc.
When the above expenses are actually incurred, debit: R&D expenditure - XXX project - direct labor, direct materials, indirect expenses: raw materials, bank deposits, wages payable to R&D employees, etc.; and At the same time, specific measurement standards are adopted to allocate some of the same R&D expenditures of the income of multiple R&D projects. For example, the current research working hours of R&D personnel or the working hours of different R&D projects can be used to make reasonable allocations.
3. Disclosure of R&D expenditure information
Regarding the current lack of and irregular disclosure of R&D expenditure information, the author recommends that the information of each R&D project be listed separately in the notes to the accounting statements. progress and overall costs.
IV. Summary
R&D plays an increasingly important role in enterprises, and its importance is increasingly recognized by people. Therefore, the need for accounting information on R&D expenditures also increases. gradually increase.
The current processing method can no longer meet the needs of enterprises.
In this article, the use of cost accounting ideas increases the workload of accounting to some extent, but it also improves the content of accounting information for R&D expenditures, thus satisfying the needs of those who need information. need.
References:
[1]Li Yue'e, Liu Lei. Concept of partial capitalization of R&D expenditures[J]. Friends of Accounting, 2010(12)
[2] Li Weiyi. Accounting and tax treatment of corporate R&D expenditures under the new standards [J]. Accounting Friends, 2009(18)
Improvements in accounting of corporate R&D expenditures 2
< p>Abstract This article outlines the importance of corporate R&D expenditure accounting, discusses the shortcomings of the current R&D expenditure accounting methods, and recommends that new R&D expenditure accounting not distinguish between research and development stages, and draw lessons from bad debt provisions and cost accounting. According to the idea, two accounting treatments, estimated capitalization and capitalization, are carried out according to whether the R&D project forms intangible assets to meet different needs at different levels.Keywords R&D expenditure; accounting; capitalization
1. Diversification of accounting information requirements for R&D expenditure
In the environment of world economic integration, The rapid development of economy and trade has intensified competition among enterprises. Enterprises are willing to invest more manpower, material resources, and financial resources in research and development activities, and R&D expenditures account for an increasing proportion of total enterprise expenditures.
With the emergence of various tax needs from corporate investors and business managers, the simple accounting method for R&D expenditures can no longer meet the needs.
1. Enterprise managers
At present, enterprises have become the main body of R&D activities in the whole society.
Especially some high-tech enterprises.
Therefore, the amount and intensity of investment in R&D by enterprises have gradually expanded.
As managers of enterprises, they are paying more and more attention to the effectiveness and efficiency of R&D expenditures.
Therefore, by allowing enterprise managers to grasp the overall investment and composition of R&D projects, they can appropriately arrange the amount and intensity of R&D expenditures, and ultimately maximize the efficiency of R&D expenditures.
2. Investors
Research and development is actually an investment behavior. Its purpose is to ultimately achieve the development and promotion of new products through technological innovation, and form technology patents, etc. .
Therefore, R&D investment is to a large extent no different from other investment behaviors, and it also brings huge profits to enterprises.
Therefore, accounting information on R&D expenditures is of very high value.
For investors, understanding the total amount, structure, and investment direction of corporate R&D expenditures can provide a basis for their investment decisions.
3. Taxation Department
According to the new tax law, all domestic enterprises, foreign-funded enterprises and other institutions, as long as their financial systems are sound and audits and taxation are implemented, all research and development by these enterprises or departments The amount of investment required for products, patents, processes or technologies, on the basis of full deduction, can also be deducted additionally before corporate income tax at 50% of the actual amount incurred in the current year.
Therefore, as a national law enforcement agency, the tax authorities represent national interests and require enterprises to provide a reasonable scope of R&D expenditures and accurate R&D expenditure accounting information.
2. Shortcomings in the current accounting of R&D expenditures
my country’s accounting standards stipulate that expenditures on internal R&D projects of enterprises should be distinguished between expenditures in the research stage and expenditures in the development stage; expenditures in the research stage , should be included in the current profit and loss when incurred; debit: research and development expenditures, expensed expenditures; credits: raw materials, accumulated depreciation and other accounts; at the end of the period, debit: administrative expenses, credit: research and development expenditures, expensed expenditures.
Expenditures in the development stage can only be recognized as intangible assets if they meet the given conditions; expenditures in the development stage, debit: R&D expenditures, capitalized expenditures, debit: raw materials, bank deposits and other subjects?; Research After the development project reaches its intended use and forms intangible assets, credit: intangible asset patent, credit: research and development expenditures, capitalized expenditures.
This accounting has the following shortcomings:
1. It is difficult to judge and distinguish the scope of research and development activities in daily accounting
Research and development Projects may have a long cycle, and the process is staggered and repeated. Research and development activities are likely to be carried out at the same time, and more reliance on the professional judgment of accountants may lead to companies subjectively manipulating profits in order to achieve short-term goals and purposefully divide the two stages. , thus making the accounting information less objective and fair.
2. The division of R&D stages does not reflect the principle of prudence.
Divide the accounting of R&D expenditures into research stages and development stages.
Although it simplifies accounting to a certain extent, it does not reflect the principle of prudence.
For example: the composition of R&D expenditures is not detailed enough, and the expense treatment of R&D expenditures in the research stage makes it difficult to avoid subjective behaviors of manipulating profits, resulting in missed or underpaid income taxes.
3. Improved ideas and specific accounting treatments for R&D expenditure accounting
Based on the above analysis, this article believes that it is no longer necessary to distinguish between the research and development stages, and draw lessons from the ideas of cost accounting to re- Determine the detailed accounts and accounting scope of R&D expenditure accounting, and use whether the R&D project will eventually form intangible assets as the judgment condition. Before the intangible assets are formed, it will be capitalized as expected, and bad debt provisions for R&D expenditures will be accrued in a certain way; for intangible assets formed, Assets are treated as fully capitalized, and the capitalized amount is accounted for as an intangible asset and amortized and impaired on a regular basis.
1. Reclassify the accounting accounts for R&D expenditures
Based on the bad debt provision theory, set up R&D bad debt provision accounts in the expected capitalization stage, simulate the cost accounting theory, and set up R&D according to R&D projects. Expenditure multi-level detailed accounts.
The details are as follows: the first-level subjects are R&D expenditures, reflecting the total investment in R&D activities; the second-level subjects are a number of specific R&D projects, reflecting the detailed composition of R&D projects; the third-level subjects are similar to cost accounting detailed subjects: direct Materials, direct labor, depreciation, and other expenses reflect the business content and economic type of each project expenditure.
This setting can specifically reflect the overall investment, detailed composition, structure and type of R&D expenditures, and meet the information needs of different levels of R&D expenditures.
Determine the scope of accounting for R&D expenditures: According to the cost accounting method, R&D expenditures are divided into three parts: materials, labor, and expenses, which correspond to the setting of R&D accounting subjects.
Materials here refer to materials, fuel, and power costs directly consumed in R&D activities; labor refers to the wages, salaries, bonuses, allowances, and subsidies of employees who are directly engaged in R&D activities; expenses Refers to equipment depreciation and other expenses (including new product design fees, new process specification formulation fees, and technical book materials fees and data translation fees directly related to R&D activities; on-site test fees; demonstration, review, and acceptance fees for R&D results, etc.) .
2. Specific improvements in the accounting method for R&D expenditures
(1) When the R&D project does not reach its intended purpose, that is, before it forms an intangible asset, the "R&D bad debt provision" account is set, It is similar in nature to the "provision for bad debts" account and is an allowance account for "R&D expenditures".
At the end of each period, the company determines the probability of project success through technical analysis and accrues R&D bad debt reserves.
The following formula can be used to calculate: R&D bad debt provision = total cumulative investment in the current period? (1-estimated success rate).
Daily collection of R&D expenditures:
Debit: R&D expenditure? XX project? Direct materials/direct labor/depreciation/other expenses
Credit: raw materials, payables Employee salaries, bank deposits, etc.
At the same time, R&D bad debt provisions are calculated according to the formula:
Debit: administrative expenses? R&D bad debt provisions
Credit: R&D bad debt provisions? XX project
The project is over and no intangible assets have been formed
Debit: management expenses? Research and development expenses
Debit: R&D expenditure?XX project?Direct labor/direct Materials/depreciation/other expenses
Simultaneously transfer bad debt provisions
Debit: R&D bad debt provisions? XX project
Credit: Management expenses? R&D bad debt provisions< /p>
(2) When the R&D project ends and all or part of the intangible assets are formed, for each R&D project, referring to the cost allocation method of completed products and products in process in cost accounting, the proportion of research working hours of R&D personnel can be adopted, and The estimated capitalized amount of each project is allocated between completed and unfinished projects, and intangible assets are amortized and depreciated. Unfinished R&D projects are accounted for in accordance with (1) above.
Debit: Intangible assets?XX project
Credit: R&D expenditure?XX project?Direct materials/direct labor/depreciation/other expenses
At the same time, the capital Transferring back bad debt provisions during the transformation stage:
Debit: R&D bad debt provisions? XX project
Credit: administrative expenses?R&D bad debt provisions
IV. Summary
R&D plays an increasingly important role in enterprises, and R&D expenditures account for an increasing proportion of total enterprise expenditures. The demand for accounting information on R&D expenditures is also increasing day by day.
The current accounting treatment of R&D expenditures can no longer meet these needs.
Although the idea of ??using bad debt provisions and cost accounting proposed in this article increases the accounting workload to a certain extent, the quality and efficiency of R&D expenditure accounting information have been improved, and at the same time it has also improved the accounting information. It facilitates accountants to make daily professional judgments, reduces the possibility of artificial manipulation of profits to a certain extent, and can meet the needs of people with different information needs to a greater extent.
References
[1] Formulated by the People's Republic of China and the Ministry of Finance. Accounting Standards for Business Enterprises [M]. Beijing: Economic Science Press, 2008.29.
[2] Compiled by the Chinese Institute of Certified Public Accountants. Accounting [M]. Beijing: China Financial and Economic Press, 2008.139-140.
[3] Writing Group of the Accounting Department of the Ministry of Finance. Accounting Standards for Business Enterprises Explanation [M]. Beijing: People's Publishing House, 2007.102-103.
[4] He Mengyuan. International comparison of accounting treatments [J]. Business Modernization, 2006(467)80-81.
p>[5] Wang Ruilong. Evidence of my country’s accounting standards and international convergence [J]. Friends of Accounting, 2009 (2) 106.
[6] Hou Xiaohong, Ma Li. my country’s R&D expense accounting Concept of processing [J]. China Management Informatization, 2008(8)19-21.
[7] Zhang Pingping, Analysis of R&D Expenditure Accounting and Methods [J]. China Foreign Investment, 2012(2) )122.