Research On The Capitalization Of Enterprise R&D Expenditure Before And After The IPO Of The Science And Technology Innovation Board

On June 13,2019,the establishment of the science and Technology Innovation Board attracted many high-tech enterprises to settle in.Its relatively low attention and flexible and loose listing conditions made the real performance of the science and technology innovation Board enterprises become elusive.Since the establishment of the Science and Technology Innovation Board,the policy has been inclined to the drug innovation and research and development of bio-medical enterprises,thus producing a number of rapidly growing bio-medical enterprises.The research object of this paper,Chipscreen Company,was questioned by the CSRC for four rounds because the capitalization processing method of research and development expenditure is unclear.After a series of adjustments,it finally became one of the earliest biomedical enterprises listed on the science and Technology Innovation Board.The controversial capitalization of r&d expenditure of biomedical enterprises in the course of this inquiry has attracted renewed attention under the background of the normalization of COVID-19.Analyzed the disputes in the regulatory inquiry letter;Secondly,the R&D expenditure accounting policy changes around the IPO;finally,to simulate the company’s accounting surplus and tax burden.The results show that the R&D expenditure of Chipscreen Company has accounting policy differences before and after IPO,and the direct result of this difference is the accounting surplus before IPO and the reduction of comprehensive tax burden.Both the company’s internal equity incentive plan and the executive reduction plan strengthen the motivation of enterprise managers to capitalize their R&D expenditure.Further research found that the biomedical industry research and development has many unforeseen factors,even if R&D spending has met the capitalization conditions,drug research and development project still has greater risk of failure and marketing risk.Finally,this paper provides some policy suggestions for regulatory practice.On the one hand,it is necessary to clarify the capitalization point selection of R&D expenditure,strengthen the accounting information disclosure system of R&D expenditure,and list the relevant information of R&D expenditure separately when necessary.The research done in this paper aims to reopen the topic from the perspective of encouraging innovation and risk aversion,and provide a certain reference value for accounting theories related to R&D expenditure.