Research On Capitalization Of R?D Expenditure Of Giga Device

The development of science and technology is a key factor in a country's development,among which IC is the key factor of competition among various countries.Many enterprises regard the development of high-tech products as their main business in order to meet the market demand.IC enterprises must develop new products and technologies in order to keep their core competitiveness,But the enterprise R?D expenditure becomes the enterprise growth important index.In China,the accounting standards of R?D expenditure have changed several times.The latest of which was in 2006,when the state introduced a new accounting standard.This standard has changed the previous national requirement that all R?D expenditures must be expensed,It is also stipulated that domestic enterprises should start to implement the accounting treatment of conditional capitalization of research and development expenses.The impact of this on IC enterprises is that it will change their company's asset structure,financial status and profit and loss calculation results.This paper adopts the case analysis method and selects the case company as Beijing Zhaoyi Innovation Technology Co.,Ltd.(referred to as Giga Device for short).First of all,this paper introduces the current situation of Chinese integrated circuit development enterprises when choosing accounting policy of R?D expenditure.and studies and analyzes the characteristics of R?D expenditure of IC design companies compared with other industries.Secondly,This paper analyzes the present situation of China integrated circuit design enterprises when making R?D expenditure policy choices,and compares these situations to explore the impact of R?D expenditure capitalization operation on the company.Then,it is a case study.This paper selects Giga Device which has reasonable R?D expenditure capitalization operation as a sample case.After studying the financial data and management system of Giga Device,it is determined that Zhaoyi Innovation R?D expenditure capitalization is reasonable,and then this rationality is analyzed in detail.Then,we dig into the reasons why Giga Device can operate normally,and in the process of studying how to operate the enterprises specifically,we extract five practices worthy of reference from Giga Device.Finally,according to these practices,combined with the adverse effects and problems that the capitalization of R?D expenditure may bring,we make four suggestions to other small and medium-sized integrated circuit enterprises in China which can be used for direct reference: First,define the R?D stage as clearly as possible;Second,strictly divide the research stage and development stage in the process of R?D projects;Third,do a good job in the project management of R?D expenditure capitalization projects;Fourthly,it is necessary to ensure that the process of capitalization of R?D expenditure is reasonable and compliant.The above four suggestions are aimed at a large number of Chinese integrated circuit development enterprises,especially some small and medium-sized integrated circuit enterprises seeking to develop.Based on this,the potential innovation of this paper is: according to the characteristics of IC industry R?D activities and accounting standards requirements,combined with financial data,management data and practice of specific case companies,it studies the influence and desirable experience of capitalization of R?D expenditure of IC industry,At the same time,four suggestions are put forward to promote the normal capitalization of R?D expenditure of domestic IC design enterprises.