Accounting treatment of research and development expenses?

In China, the accounting treatment of R&D expenses has also gone through these three stages, and its historical evolution is as follows:

1. Capitalization stage. China1Article 27 of the General Principles of Enterprise Finance, which came into effect in July, 1993, stipulates: "In accounting, the expenditure of intangible assets purchased or obtained according to legal procedures should usually be capitalized and shared among the various benefit periods of the enterprise". Therefore, at this stage, China adopts capitalization accounting treatment method for R&D expenditure.

2. Full cost stage. China's Accounting Standards for Business Enterprises-Intangible Assets, which came into effect on 200 1, 1, stipulates: "Intangible assets developed by enterprises themselves and applied for according to law shall be confirmed on the basis of registration fees, attorney fees and other expenses incurred when they are obtained according to law; Material expenses incurred in the R&D process, wages and welfare expenses of developers directly involved, rent and loan expenses incurred in the development process are directly included in the current profit and loss; R&D expenses that have been included in the expenses of each period? When intangible assets are successful and apply for patent rights according to law, the research and development expenses that have been included in the expenses will not be capitalized. " It can be seen that at this stage, all R&D expenses are included in the current profit and loss.

3. The stage of partially capitalized expenses. Articles 7, 8 and 9 of the new Accounting Standards for Business Enterprises No.6-Intangible Assets issued on February 25th, 2006 stipulate: "The expenditure of internal research and development projects should be distinguished from the expenditure in the development stage, and the expenditure of internal research and development projects should be included in the current profit and loss when it occurs. Expenditure at the stage of internal R&D projects can be capitalized if it can be proved that it meets the relevant conditions and should be recognized as intangible assets. " It can be seen that the new standard adopts the conditional capitalization method for the accounting treatment of R&D expenses.