First, the expenses incurred in the research stage and the expense of R&D expenditure in the research stage and the development stage cannot be distinguished;

Second, the expenditures in the development stage of internal R&D projects can prove that the expenditures that meet the conditions of intangible assets are capitalized and amortized by stages.

The Enterprise Income Tax Law of People's Republic of China (PRC) deals with R&D expenses in two cases. "If the R&D expenses incurred by an enterprise for developing new technologies, new products and new processes do not form intangible assets and are included in the current profits and losses, they shall be deducted according to 50% of the R&D expenses; Where intangible assets are formed, they shall be amortized according to 150% of the cost of intangible assets ".

Extended data:

R&D expenses refer to the expenses paid for the research and development of a project. China's relevant systems regulate R&D expenses from two aspects: Accounting Standards for Enterprises No.6-Intangible Assets and People's Republic of China (PRC) Enterprise Income Tax Law.

Article 13 of China's Accounting Standards for Business Enterprises No.6-Intangible Assets stipulates that "the cost of self-developed intangible assets includes the total expenditure from the date when it meets the provisions of Articles 4 and 9 of Accounting Standards for Business Enterprises No.6-Intangible Assets to the time when it reaches its intended purpose, but the expenditure already spent in the previous period is not adjusted". In essence, China's financial department has clearly stipulated in the accounting standards that "the expenditure of internal research and development projects in the research stage should be included in the current profit and loss when it occurs", while "the expenditure of internal research and development projects in the development stage should be recognized as intangible assets when the following circumstances can be proved: 1. Technically speaking, it is feasible to complete intangible assets for use or sale. 2. Intentionally complete the intangible asset and use or sell it. 3. The way in which intangible assets will generate future economic benefits, including being able to prove that products produced by using the intangible assets exist in the market or that the intangible assets themselves exist in the market; When intangible assets are to be used internally, their usefulness should be proved. 4. Having sufficient technical, financial and other resources to support the development of the intangible assets, and having the ability to use or sell the intangible assets. 5. Expenditure attributable to the development stage of intangible assets can be measured reliably. If it is impossible to distinguish between the R&D expenditure in the research stage and the R&D expenditure in the development stage, it should be all expensed and included in the current profit and loss (management expenses).

References:

Baidu encyclopedia-research and development expenses