First of all, when an enterprise independently develops scientific research projects such as new technologies and new products, the expenses incurred during its internal independent research and development projects should be divided into two stages, namely, the research stage and the development stage.
First of all, you have to understand what capitalization is and what expensiveness is. Simply understood, what can form long-term assets is capitalization; One-time or only short-term use is a fee.
Take chestnuts for example. The money you spend on TV, refrigerator and washing machine is capitalized, because they can last for a long time. It is unreasonable to count all the money spent as this expenditure. The expenses need to be calculated in installments within 10 years when he provides services, that is, depreciation is accrued in installments; Garbage bags, toilet paper and cosmetics can be used up in a few days or a short time, and their value is low, so they are charged directly at one time. This is called expensization.
Research stage:
Because in the research stage, enterprises can't judge whether the expenses incurred in this stage can successfully develop results, and it is difficult to predict and determine the causal relationship. Therefore, all expenses incurred at this stage are included in the current profit and loss. Specific accounting treatment is as follows:
1, when it happens:
Debit: R&D expenditure-expense expenditure
Loans: bank deposits/other monetary funds.
2. When included in the profit and loss:
Borrow: management expenses-research expenses
Loan: R&D expenditure-expense expenditure
Development stage:
In the development stage, if it can be judged that the expenses incurred in this stage meet the capitalization conditions, they will be included in the research and development cost of intangible assets. On the contrary, it is included in the current profit and loss. As shown below.
Specific accounting entries that meet capitalization conditions are handled as follows:
1, when it happens:
Debit: R&D expenditure-capitalized expenditure
Loans: bank deposits/other monetary funds.
2. When the intended use is achieved:
Borrow: intangible assets
Loan: R&D expenditure-capitalized expenditure
Specific accounting entries that do not meet capitalization conditions are handled as follows:
1, when it happens:
Debit: R&D expenditure-expense expenditure
Loans: bank deposits/other monetary funds.
2. When included in the profit and loss:
Borrow: management expenses-research expenses
Loan: R&D expenditure-expense expenditure
Tip:
Intangible assets of independent research and development projects of enterprises. In the development stage, the capitalization of related expenses must meet the following conditions:
1. It is technically feasible to complete intangible assets for use or sale.
2. There is an intention to complete the intangible asset and use or sell it.
3. Intangible assets can generate economic benefits, including being able to prove that the products produced by using the intangible assets exist in the market or that the intangible assets themselves exist in the market, and the intangible assets will be used internally, so its usefulness should be proved.
4. Having sufficient technical, financial and other resources to support the development of the intangible assets, and having the ability to use or sell the intangible assets.
5. Expenditure attributable to the development stage of intangible assets can be measured reliably.