As we all know, R&D expenditure can be accounted by R&D expenditure account, and those eligible for capitalization should be capitalized. So how to make relevant accounting entries?

Accounting entries of R&D expenses

1. In accounting treatment, the expenses related to the R&D stage do not meet the capitalization conditions and are included in the current profit and loss. Accounting treatment is as follows:

Debit: R&D expenditure-expense expenditure

Loans: bank deposits/cash on hand/raw materials, etc.

The end of the month is included in the current profit and loss, and the accounting treatment is as follows:

Borrow: management expenses-research and development expenses

Loan: R&D expenditure-expense expenditure

2. If the capitalization conditions are met, the accounting treatment is as follows:

Debit: R&D expenditure-capitalized expenditure

Loans: raw materials/bank deposits/wages payable to employees, etc.

3, research and development projects to achieve the intended purpose of intangible assets, accounting treatment is as follows:

Borrow: intangible assets

Loans: research expenditure

Relevant regulations on R&D expenditure

According to the accounting standards for business enterprises, all expenditures in the research stage are included in the current profit and loss; Expenditures in the development stage that do not meet the requirements are included in the current profits and losses; Only when it meets the conditions can it be capitalized.

According to the enterprise income tax law, the research and development expenses incurred by enterprises in research and development activities such as new technologies, new products and new processes can be deducted when calculating taxable income.