A Comparative Research on the Capitalization and Expense Accounting of Enterprise R&D Expenditures

Abstract

The accounting method of R&D expenditure has a significant impact on the production and operation performance of enterprises with the increase of R&D investment. The research analyzes the different effects of R&D expenditure capitalization and expense processing methods on the financial status, capital status and subsequent R&D investment scale of enterprises, and concludes that enterprises should comprehensively balance the principles of measurement prudence and relevance when choosing R&D expenditure accounting policies. The R&D expenditure accounting management should fully reflect the economic essence of the business, support the creation of enterprise value, and meet the normative requirements of internal control. The research provides a reference for enterprises to strengthen the accounting management of R&D expenditures and improve the value level of R&D expenditures.