Study On Accounting Treatment Of Research And Development Expenditures In Enterprises

Along with the era of knowledge economy, the intangible assets have increasingly taken a larger proportion in the total assets of the enterprises. This has brought enormous influence and impact on traditional intangible assets, such as in value recognition, measurement and amortization. The R&D operation is an important creative activity of an enterprise. The accounting treatment involved in it is extremely complex. This is not only because the R&D accounting treatment has complexity technically, but because it has been influenced by economic and political environment. That's why there is big difference between accounting standards of various countries. Therefore, the research on R&D accounting treatment is an urgent and essential issue.Although there are new regulations on R&D treatment in the newly published accounting standards of the Ministry of Finance on February15, 2006(lt chooses conditional capitalization to R&D expenditures and manifests consistency with international accounting standards), it still has great dispute in theory and practical realm. This kind of accounting treatment roots in IAS, but it can not avoid the deviation when reflecting the value of the enterprise and even cause misunderstanding to enterprise's financial situation to users of accounting information. The accounting treatment mode of R&D expenditures must adjust with the change of economic environment and the need of the users of accounting information. Then it can adapt to the environment, keep and improve status and function of the accounting information when users making economy policy.This paper bases on the research of accounting treatment of R&D expenditures. It divides into 3 major parts and 8 chapters. In the first part, the criterion of accounting treatment of R&D expenditures of various countries has been compared carefully and objectively; In the second part, 3 kinds of treatment method: all expensed, all capitalized and conditionally capitalized have been compared and analyzed systematically. It also points out the reason of choosing conditionally capitalized method in our country from the angles of financial accounting concept framework and earnings management; In the third part, it puts forward a full set of accounting treatment process, including recognition, measurement, recording and disclosure. It also sets up new accounting title to R&D activities of the enterprises, thus it can be more accurate and comprehensive to reflect enterprise's true financial situation.