1, medical device product registration certificate registration fee can not be included in the research and development costs.
2, what point of R & D expensing, R & D capitalization, what point of time to be included in the cost?
Enterprises carrying out research and development activities in the actual incurred R & D costs to form intangible assets, its tax capitalization point should be consistent with the accounting treatment. ASBE No. 6 - Intangible Assets stipulates that the expenditures on research and development projects within an enterprise should be distinguished between research-phase expenditures and development-phase expenditures.
Research Phase Expenditures
Research refers to original and planned investigations for the purpose of acquiring new scientific or technological knowledge and understanding them. For example, activities intended to acquire knowledge, applied research, evaluation and final selection of research results or other knowledge, research into substitutes for materials, equipment, products, processes, systems or services, and the formulation, design, evaluation and final selection of possible substitutes for new or improved materials, equipment, products, processes, systems, or services are all research activities. The research phase is exploratory in nature, and there is a high degree of uncertainty as to whether the research activities conducted will be transferred to development in the future, and whether an intangible asset will be created as a result of the development. Therefore, for in-house research and development projects, the expenses related to the research phase should be fully expensed when they are incurred and included in the current period's profit and loss (administrative expenses).
? Development Expenditure
Development refers to the application of research results or other knowledge to a program or design in order to produce new or substantially improved materials, devices, products, etc., before commercial production or use. For example, the design, construction, and testing of prototypes and models prior to production or use, and the design, construction, and operation of pilot production facilities that are not economically viable for commercial production are development activities. Considering that it is more likely than not that a research and development project entering the development stage will produce results, if an enterprise can prove that the development expenditures meet the definition of intangible assets and the related recognition conditions, it can recognize them as intangible assets.
Specifically, for internal research and development projects, the following conditions must be met before the development expenditures can be capitalized and recognized as intangible assets, otherwise they should be charged to current profit and loss (administrative expenses).
(1) It is technically feasible to complete the intangible asset so that it can be used or sold.
(2) There is an intent to complete the intangible asset and use or sell it.?
(3) The manner in which the intangible asset will generate economic benefits, including the ability to demonstrate that there is a market for the product produced by the use of the intangible asset or a market for the intangible asset itself, and where the intangible asset will be used internally, the usefulness of the intangible asset should be demonstrated.
(4) Sufficient technical, financial and other resources are available to complete the development of the intangible asset and the ability to use or sell the intangible asset.
(5) Expenditures attributable to the development phase of the intangible asset can be measured reliably.
Expenditures that cannot be distinguished between the research and development stages
Expenditures that cannot be distinguished between the research and development stages should be expensed when incurred and charged to current profit or loss (administrative expenses).