Case Study Of Capitalization Of R&D Expenditure Of IFLYTAK

In the past 40 years of reform and opening up,China's economic development has made great progress.However,with the weakening of the driving forces of capital and labor,the innovation-driven economic growth mode has gradually become the future development direction,and enterprises are an important part of the modern business economy.It is an important subject to promote technological innovation and improve production efficiency.Therefore,the innovation capability and research and development capabilities of enterprises are receiving more and more attention from the society.From the perspective of accounting,R&D expenditure is an important financial data for high-tech enterprises.Under different accounting standards around the world,there are different ways of handling.In China,R&D expenditures meet the conditions.Capitalization of R&D investment can be carried out so that financial data can better reflect the R&D situation of enterprises,but the company has a lot of room for adjustment when applying these standards and the subjectivity is quite high.In the United States,research and development expenditures are fully expensed.Therefore,the issue of capitalization of R&D expenditure is an important issue in the accounting field.Taking i FLYTAK as an example,this paper analyzes the basic situation of R&D expenditure and capitalization of R&D expenditure under the regulations of Chinese enterprise accounting standards,and discusses the impact and effect of such accounting treatment on the company.On the basis of this,it analyzes the rationality of accounting treatment and the risks that may be faced,reveals the dilemma facing the current accounting treatment of R&D expenditure,and finally summarizes the experience and enlightenment of this case.