国际会计学8

Example: patent


Research and development costs

Introduction to R&D

Large companies may spend significant amounts of money on research and development(R&D) activities. Obviously, any amounts so expended must be credited to cash and debited to an account for research and development expenditure. The accounting problem is how to treat the debit balance on R&D account at the reporting date. There are two possibilities.

‘Intangible assets’ means assets that literally cannot be touched, as opposed to tangible assets(such as plant and machinery) which have a physical existence. Intangible assets include goodwill, intellectual rights(eg patents, performing rights and authorship rights), as well as research and development costs.
Research and development costs(contin)

Definitions

An intangible asset is an identifiable non-monetary asset without physical substance. The asset must be:
A business buys a patent for $50,000. It expects to use the patent for the next ten years, after which it will be valueless. Amortisation is calculated in the same way as for tangible assets: (Cost – residual value)/Estimated useful life In this case, amortisation will be $5,000 per annum.


Examples of activities which might be included in either research or development, or which are neither but may be closely associated with both.

Research
Amortisation is the systematic allocation of the depreciable amount of an intangible asset over its useful life. Amortisation period and amortisation method should be reviewed at each financial year end. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Useful life is:
国际会计学
中山大学南方学院会计系 刘璐
Part H Intangible non-current assets

Contents
Intangible assets Research and development costs

Intangible assets

Intangible assets


The debit balance may be classified as an expense and transferred to the income statement.This is referred to as ’writing off’ the expenditure. The debit balance may be classified as an asset and included in the statement of financial position. This is referred to as ‘capitalising’ or ‘carrying forward’ or ‘deferring’ the expenditure. If R&D activity eventually leads to new or improved products which generate revenue, the costs should be carried forward to be matched against that revenue in future accounting period.

Controlled by the entity as a result of events in the past; and Something from which the entity expects future economic benefits to flow


Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services prior to the commencement of commercial production or use.




Salaries, wages and other employment related costs of personnel engaged in R&D activities Costs of materials and services consumed in R&D activities Depreciation of property, plant and equipment to the extent that these assets are used for R&D activities Overhead costs, other than general administrative costs, related to R&D activities; these cost are allocated o bases similar to those used in allocating overhead costs to inventories Other costs, such as the amortisation of patents and licences, to the extent that these assets are used for R&D activities.
Intangible assets(contin)

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Accounting treatment

Intangible assets are usually capitalised in the accounts and amortised. Amortisation is intended to write off the asset over its economic life(under the accruals concept).

The period over which an asset is expected to be available for use by an entity; or The number of production or similar units expected to be obtained from the asset by an entity. (IAS 38)
Research and development costs(contin)

Recognition of R&D costs

The relationship between the R&D costs and the economic benefit expected to derive from the will determine the allocation of those costs to different periods. Recognition of the costs as an asset will only occur where it is probable that the cost will produce future economic benefits for the entity and where the costs can be measured reliably.

Development




Components of research and development costs

Research and development costs(contin)

Research and development costs will include all costs that are directly attributable to research and development activities, or that can be allocated on a reasonable basis. The standard lists the costs which may be included in R&D, where applicable.

Activities aimed at obtaining new knowledge The search for applications of research findings or other knowledge The search for product or process alternatives The formulation and design of possible new or improved product or process alternatives The design, construction and testing of pre-production prototypes and models The design of tools, jigs, moulds and dies involving new technology The design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial production The design construction and testing of a chosen alternative for new/improved materials