Research On The Accounting Treatment Of R&D Expenditureinguozhen Environmental Company

The arrival of the knowledge economy has made the high-tech industry flourish,which act as one of the most leading forces to promote the upgrading of the national industrial structure.As innovation and technology upgrading become the source of the development of high-tech enterprises,the proportion of expenses on research and development(R&D)in the total assets is getting bigger,and the influence of R&D on the development of high-tech enterprises is more and more important.This requires a more scientific and rational accounting report of R&D expenditure,which can disclosure the relevant information accurately,so that the book value on the enterprise's financial report is as close as possible to its inner value.The final purpose is to provide reliable information for managers' decision-making.This paper will focus on the problems faced by the R&D investment in the accounting treatment process.By combining theoretical analysis with case study,we provide some improvement measures for high-tech enterprise based on the accounting standards and current situations of R&D.First of all,by reviewing a large number of domestic and foreign literatures,we have studied the current researches of R&D accounting management in high-tech enterprises.A comprehensive evaluation is proposed from the aspects of enterprise earnings management,information disclosure,enterprise value as well as the capitalization and amortization of R&D expenditure.Secondly,it defines the relevant concepts of high-tech enterprises and R&D expenses,and summarizes the characteristics of R&D investment in high-tech enterprises.The paper combs the typical accounting standards of R&D expenditure in different countries,and compares the advantages and disadvantages from three kinds of rules which are all amortization,all capitalization and conditional capitalizationof R&D investment.And analyzes the problems faced by R&D management based on China's current accounting regulations.Then we chose an environmental protection company named Guozhen as the subject of case study to analyze its detailed accounting behaviorsof R&D from the accounting setup,principles and process.In addition,we make a comprehensive analysis and evaluation for the implementation effect of the company's accounting management process based on the example of STE06 project.Finally,some suggestions to improve the effect of accounting treatment in practice of R&D expenses for high-tech enterprises are provide on the basis of theoretical analysis and case study.The effectiveness of R&D investment is a very important issue for high-tech enterprises.Based on theoretical analysis and case study,this paper systematically analysis the problem of R&D expenditure management and provide some rationalization suggestions which may help high-tech enterprises to improve the accounting practice ofR&D expenditure.