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 in the research stage of internal research and development projects should be included in the current profit and loss when it occurs", while "the expenditure in the development stage of internal research and development projects should be recognized as intangible assets when the following circumstances can be proved:
1. Technically, it is feasible to complete this intangible asset so that it can be used or sold.
2. There is an intention to 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.
Extended data
China's enterprise income tax law stipulates that the research and development expenses incurred by enterprises in developing new technologies, new products and new processes can be deducted when calculating taxable income. Accordingly, the "Regulations for the Implementation of the Enterprise Income Tax Law" clearly stipulates that the above-mentioned research and development expenses of enterprises shall be deducted by 50% on the basis of actual deduction.
"For example, the actual expenditure of an enterprise in developing new products in that year was 100 yuan. If 50% is deducted based on the actual deduction, it means that the amount of 150 yuan can be deducted before tax. " Liu Zuo explained that increasing the deduction items means that the taxable income of enterprises is reduced, and the enterprise income tax payable is also reduced accordingly, thus further encouraging enterprises to increase their investment in R&D through tax incentives.
Baidu encyclopedia-research and development expenses
People's Network-Five R&D expenses can be deducted before tax (policy interpretation)