R & D Accounting Standards Change The Performance Impact Of R & D Investment

Formally implemented in 2007 the "Corporate Accounting Standard No. 6 - Intangible Assets" in the accounting treatment of R&D investment made certain changes: from the total "cost" of the research and development phase to "capital" of treatment, that meet the stated requirements. The original purpose of R&D accounting standards change is to make the R&D investment projects of enterprises and company's operating conditions and financial results be more objective, realistic reflected in the financial report. Before and after the revision of the guidelines, The effectiveness of R&D investment and other issues discussed, the new guidelines focus on the real economy. The two main views are formatted On the one hand, more scholars believe that the new guidelines has greatly improved, to achieve the original goal of the revised guidelines. On the other hand, many scholars believe that there are some inadequacies of the new guidelines. it is difficult to achieve the original goal of the revised guidelines. In this context, R&D of new accounting standards on business performance of R&D into the impact of strong practical significance.Based on the years 2004-2007 in the small board listing 202 queries listed company's annual report, for the 94 years from 2006-2008 R&D investment and complete disclosure of the financial indicators of company, for the total sample of subjects. Taking into account the total sample selected companies listed in 2007, in the small plate under the listing requirements of the relevant provisions, there may be some "public" behavior and other factors. Excluded in the total sample of companies listed in 2007, retained 2004-2006 listed on the board in small and medium sized companies, a total of 44 sub-samples for further testing analysis. In the traditional R&D investment performance index, based on this added to the cash flow target of assessment, such as total assets net cash flows generated by other indicators. Two samples were investigated in R&D after the change of accounting standards, compared to prior to the change, the new R&D investment criteria on the existence of the performance impact.In this paper, obtained:The first,R&D investment accounting change compared to before the guidelines changed.The second,R&D investment is more conducive to improving corporate profitability, but this improvement only in 2007, the performance significantly.The third,R&D investment accounting standards prior to the change than the guidelines changed, R&D investment is more conducive to business growth of this assumption has not been confirmed. Based on the conclusions drawn: The new R&D to improve the accounting standards, but also some disadvantages, especially for business use of R&D accounting method selectively control the profit, provided the space. This paper hopes to provide a reference to further improve our R&D accounting standards .