The Research On The Point Of Selection Of Capitalization Of R&D Expenses In Pharmaceutical Industry

In the era of knowledge based economy,the competition of enterprises is mainly the innovation competition.For the pharmaceutical industry,R&D input plays a crucial role in the development and competition of enterprises.The amount of R&D cost in the pharmaceutical industry is huge,and its correct confirmation,measurement and disclosure have an important impact on the development of the enterprise.Since the promulgation of new accounting standards in 2006,China's conditional capitalization of R&D expenses,R& D expenses standards will be divided into stages of research and development,research costs are directly included in the current profits and losses,and development costs for capital,included in the "development of a project,the successful development of the transfer" intangible assets ",the one-time development failed to profit or loss.The guidelines objectively improve the financial indicators and management of enterprises,and encourage enterprises to actively carry out R&D activities.However,China's Accounting Standards for Enterprises only provides for the principle of R &D expenses capitalization,meet the five conditions of intangible assets not rigorously,quantitative and detailed provisions on the R&D expenses capitalization of more enterprises rely on the subjective judgment.Therefore,we must analyze the current accounting standards of R&D expenses that will bring what kind of consequences,and the possible consequences,put forward relevant suggestions and measures.This article mainly choose 50 enterprises from the pharmaceutical industry as the sample statistics and found that most enterprises take the fuzzy rules of accounting standards,did not disclose the specific provisions in line with industry characteristics,then introducing and comparing several companies which disclosed the specific provisions,visible capitalization of enterprise financial report has the different influence.Finally,selecting Hisun Pharmaceutical as sample,carrying out a detailed analysis of Hisun Pharmaceutical capital policy and coming up with the potential results.The results show that the principle provisions of accounting standards in China will increase the financial risk of the enterprise,create a space of surplus manipulation and be lack of comparability with the industry,aiming at solving these problems,put forward the following suggestions: the Ministry of finance should formulate specific provisions,develop a unified standardized information disclosure and intensify supervision,improve the ability and knowledge of financial personnel and strengthen enterprise the internal and external audit supervision of accountant occupation judgment.