Study On Accounting Problem Of R&D Expenditure Conditional Capitalization In Enterprises

Under the knowledge economy environment, the competition in enterprises is mainly the competition of innovation. In order to maintain their core competitiveness and sustainable competitive advantage, enterprises, especially high-tech enterprises are actively engaged in R&D activities, which brought R&D expenditures (R&D) surge. The accounting treatment of huge R&D expenditures becomes the focus of attention in the accounting profession. In 2006, the new CAS-5 (Chinese accounting standard) adopt the conditional capitalization mode to enterprise's R&D expenditure (also known as partly capitalization).The article initially define the definitions, characteristics as well as the scope of R&D expenditure. We would prefer the IASC's definition to research and development form many different definitions of R&D. To define the definition of R&D, the characteristics of R&D and the scope of R&D is to pave the way for the next chapter to make international comparison of R&D accounting standards.By comparing the R&D accounting standards of IASB, UK, USA, Japan and other countries, this article summed up some useful enlightenment which is useful to China's R&D cost accounting treatment: the British condition of feasibility testing at the development phase, the British revaluation system of R&D and the amortization method of the development cost, the Japanese content analysis of conditional capitalization to developed cost and the IASC's regulation of fully disclosure the R&D information and so on. These contents deserve our country to learn in the accounting treatment of R&D expenditures.The article reviewed the course of development of the accounting treatment of R&D expenditure, and then analyze the underlying causes of our country's choice to the conditional capitalization mode of R&D expenditures in view of accounting theory and reality motivation .Theoretically speaking, the conditional capitalization method of research and development expenditures made the R&D spending more consistent with the definition of assets(Such as the two key points of asset controlled and bring future economic benefits) and many other accounting principles such as correlation, allocated proportion and so on. On the practical significance, the article mainly analyze it from two aspects such as macro and micro view. On macroscopically, conditioned capitalization method conforms with the trend of international coordination, adapts to the country's policy orientation which are independence and innovation, as well as in line with the realities of China's reform conditions. On microscopically, the method is advantage to assess the value of the overall enterprise, alleviate pressure on the operators of profits and enhance their external financing and investment capacity and then will be conducive to the promotion of enterprise, such as shareholders, managers, the government, creditors and other multi-stakeholder's interests.Indeed, R&D expenditures of conditional capital is not perfect, especially our country come into operation. Based on this consideration, the paper raised questions about the issue of R&D expenditures on China's existing criteria for the capitalization conditions, Such as the R&D stage division standard is unclear, the capitalization condition is short of actual operational as well as earnings operation will breeding ground from above problem and so on . In view of the above issues which may exist, the article made the following recommendations: strictly regulating the division standards between R&D phrase. Using"peer review method", learning feasibility testing conditions from the British, strengthen the reasonable of technical feasibility test, Strengthen research information disclosure, and then avoiding manipulation of the corporate surplus, enlarge the content of R&D in the accounting report and establish"R&D expenditure information table"for the high-tech company and so on. Exploring fair value measurement attributes for the development expenditure measurement methods. Establishing a branch account under the"management expenses", additional"R&D expenditures for impairment"accounting subjects, such as R&D expenses.