Research On Surplus Management Of Research And Development Expenditure Of HaizhengPharmaceutical Industry

The innovation and continuous development of science and technology is an important prerequisite for enhancing the overall national strength and the productivity of the country.China is constantly moving forward on the path of being a powerful country in science and technology,paying attention to scientific and technological innovation and development in all fields and implementing the strategy of innovation-driven development.A large amount of capital benefits are realized through scientific and technological achievements,promoting sustainable development and strategic transformation of our economy.In order to innovate,a large amount of R&D spending is necessary,and pharmaceutical companies are one of the industries with high R&D spending,and profit fluctuations are relatively obvious.The main reason is that the R&D of pharmaceutical products takes a long time and the results of R&D are difficult to predict.The required market response cycle is also longer.This industry characteristic has brought about space for pharmaceutical enterprises to manage their earnings.Moderate surplus management can increase the value of enterprises and send signals to the market.Excessive surplus management will affect the authenticity and objectivity of accounting information.This results in losses to stakeholders.In 2006,China promulgated a new accounting standard to change the accounting treatment of R&D expenditures to conditional capitalization.The purpose is to promote R&D and produce more R&D results.However,in the new standard,It does not specify the time node of the research stage and the development stage,nor does it require the detailed disclosure of the R&D expenditure of the enterprise.This leads the enterprise to use the choice of accounting policies to carry out excessive surplus management to achieve the purpose of whitewashing the financial statements and even inflating profits.In order to avoid guaranteeing the authenticity of accounting information,protecting the interests of stakeholders,and avoiding excessive surplus management by enterprises,the relationship between R&D expenditure and surplus management in pharmaceutical manufacturing industry deserves in-depth investigation and discussion.This article mainly takes Haizheng Pharmaceutical Industry as a case study.It is based on the analysis of the surplus management of R&D expenditure,the horizontal and vertical comparison of the capitalization rate,and the use of empirical identification method to effectively identify whether an enterprise has surplus management behavior.Then it analyzes the motivation,behavior and influence of surplus management.The problems we should pay attention to in the accounting choice of expenditure,how to perfect the new accounting standard of our country about the accounting treatment of R&D expenditure,information disclosure and internal and external supervision,and put forward relevant pertinent suggestions.The analysis of the surplus management of research and development expenditure of Haizheng Pharmaceutical Co.,Ltd.leads to two conclusions: First,the listed companies with poor operating results will beautify the financial report of the company through surplus management to a certain extent,and optimize the profit level;Second,the capitalization of R&D expenditure is one of the means of surplus management.The over-capitalization of surplus management will have a negative impact on enterprises.