Research On The Capitalization Of R＆D Expenditure Of Chemical Enterprises And Its Influence

In recent years,China’s sustained high-speed economic growth,the driving force of production has been from the past capital,labor and other traditional factors to scientific and technological innovation.Many policies and guidelines have been put forward to promote the development of high-tech enterprises in China,and the national innovative economic growth model has become the main direction of future development.In order to maintain core competitivesness,enterprises keep trying their own way of transformation and development,putting into various projects R＆D.Now there are mainly two methods to deal with the R＆D expenditures in our country,all expensed R＆D expenditures treatment and the conditional capitalization accounting treatment.If a large amount of R＆D investment can not be properly handled,the long-term sustainability of enterprises will be affected.How to choose the accounting treatment of R＆D expenditure is a problem that every enterprise confront with.In order to help enterprises’ financial statements more directly reflect the R＆D status of enterprises,more truly and objectively reflect the operating results of enterprises,new accounting standards allowed eligible enterprises a new treatment method of capitalization,make the public financial data more accurately reflect the real R＆D situation of enterprises.In the specific implementation of the enterprise financial personnel,the research and development stage of the division of standards there are still some subjective factors.As an enterprise with original technology and resources as its core competitive advantage,chemical new material enterprise has a large number of R＆D activities,and has special characteristics of the industry.Therefore,the management of R＆D expenditure plays an important role in the operation and management of all chemical new material enterprises.At present,most of the research and development expenditures of new chemical materials enterprises in our country adopt the full-cost treatment method,and only a few companies choose to treat the research and development expenditures with conditional capitalization,based on the characteristics of specific industries,this paper will explore the impact of capitalization treatment of R＆D expenditure and its applicability to this industry,and make some supplement to the research field of R＆D expenditure,some suggestions on how to deal with R＆D expenditure in chemical enterprises are put forward.In this paper,we choose one of the few companies that use conditional capitalization to deal with R＆D expenditure as a case study.As the first high-tech Enterprise in China to break the foreign technology monopoly,Do-fluoride takes the leading position in the same industry for its human and financial investment in R＆D.In addition,under the situation that chemical new material enterprises generally adopt the accounting treatment of R＆D expenditure expensed,Do-fluoride insist on adopting the treatment of R＆D expenditure capitalization,and the capitalization proportion increases year by year.Therefore,this paper chooses the Do-fluoride New Materials Co.as a case study object to explore the impact and the possibility of the accounting treatment of R＆D expenditure conditional capitalization in chemical enterprises.This paper uses the method of comparative analysis to analyze the changes of relevant financial indicators under the situation that the case company intends to adopt capitalization or expense accounting treatment,explore the use of capitalization treatment of R＆D expenditure on the company’s financial impact.Based on the research on the rationality,motivation and influence of the capitalization of the case company,the paper summarizes two mechanisms of signaling and influencing the quality of information disclosure.Finally,this paper summarizes some conclusions about the accounting treatment of R＆D expenditure in chemical enterprises:first,satisfying the criterion is the necessary condition to confirm the capitalization of R＆D expenditure.Second,the high conversion rate of R＆D activities can help enterprises to launch new products,thus beautifying financial indicators and prompting the market to enhance enterprise valuation.Thirdly,a higher proportion of R＆D capitalization than before can stimulate firms’ R＆D Innovation.Accordingly,this paper summarizes the Do-fluoride R＆D expenditure capitalization for other new chemical materials industry enlightenment,including:R＆D Expenditure Capitalization requires enterprises to establish a standardized internal management system,chemical new materials enterprises can reasonably increase the proportion of R＆D expenditure capitalization.