Accounting for R&D expenses. Accounting for R&D expenses What is R&D

10. Expenses for research, development and technological work are subject to write-off as expenses for ordinary activities from the 1st day of the month following the month in which the actual application of the results obtained from performing the specified work in the production of products (execution works, provision of services), or for the management needs of the organization.

11. Write-off of expenses for each research, development, and technological work performed is carried out in one of the following ways:

linear method;
a method of writing off expenses in proportion to the volume of products (works, services).

The period for writing off expenses for research, development and technological work is determined by the organization independently based on the expected period of use of the results of research, development and technological work, during which the organization can receive economic benefits (income), but no more 5 years. In this case, the indicated useful life cannot exceed the life of the organization.

12. Write-off of expenses for research, development and technological work in a linear manner is carried out evenly over the accepted period.

13. When writing off expenses in proportion to the volume of products (work, services), the determination of the amount of expenses for research, development and technological work to be written off in the reporting period is made based on the quantitative indicator of the volume of products (work, services) in the reporting period and the ratio of the total amount of expenses for a specific research, development, design, technological work and the entire expected volume of products (work, services) for the entire period of application of the results of a specific work.

14. During the reporting year, the write-off of expenses for research, development and technological work as expenses for ordinary activities is carried out evenly in the amount of 1/12 of the annual amount, regardless of the method used to write off expenses.

There is no change in the accepted method of writing off expenses for specific research, development and technological work during the period of application of the results of a specific work.

An organization that has the right to use simplified accounting methods, including simplified accounting (financial) statements, can write off expenses for research, development and technological work as expenses for ordinary activities in the full amount as they are carried out.

15. In the event of termination of the use of the results of specific research, development or technological work in the production of products (performance of work, provision of services) or for the management needs of the organization, as well as when it becomes obvious that no economic benefits will be received in the future from the use of the results of this work, the amount of expenses for such research, development or technological work, not included in expenses for ordinary activities, is subject to write-off as other expenses of the reporting period on the date of the decision to stop using the results of this work.

“Accounting for expenses for research, development and technological work”

(PBU 17/02)

(as amended by Order of the Ministry of Finance of the Russian Federation dated September 18, 2006 N 116n)

I. General provisions

1. These Regulations establish the rules for the formation in the accounting and financial statements of commercial organizations that are legal entities under the legislation of the Russian Federation (with the exception of credit institutions), information on expenses associated with the implementation of research, development and technological work.
This Regulation is applied by organizations that carry out research, development and technological work on their own and/or are the customer of the specified work under a contract.

2. These Regulations apply to research*, development and technological work:

for which results were obtained that are subject to legal protection, but were not formalized in the manner prescribed by law;
for which results were obtained that are not subject to legal protection in accordance with the norms of current legislation.

3. This Regulation does not apply to unfinished research, development and technological work, as well as to research, development and technological work, the results of which are taken into account in accounting as intangible assets.

4. These Regulations do not apply to the organization’s expenses for the development of natural resources (conducting geological studies of subsoil, exploration (additional exploration) of developed deposits, preparatory work in the extractive industries, etc.), expenses for the preparation and development of production, new organizations, workshops, units (start-up costs), costs for preparing and mastering the production of products not intended for serial and mass production, as well as costs associated with improving technology and organization of production, improving product quality, changing product design and other operational properties carried out during the production (technological) process.

5. Information on expenses for research, development and technological work is reflected in accounting as investments in non-current assets.
Analytical accounting of expenses for research, development and technological work is carried out separately by type of work, contracts (orders).

6. The unit of accounting for expenses for research, development and technological work is an inventory object.
For the purposes of these Regulations, an inventory object is considered to be a set of expenses for work performed, the results of which are independently used in the production of products (performance of work, provision of services) or for the management needs of the organization.

Publication date: 21.07.2016

Date of change: 21.07.2016

Attached file: docx, 37.34 kB

ACCOUNTING REGULATIONS

“ACCOUNTING FOR COSTS FOR RESEARCH, DEVELOPMENT AND TECHNOLOGICAL WORK”

(approved by order of the Ministry of Finance of Russia dated November 19, 2002 No. 115n,

as amended from September 18, 2006 No. 116n, from May 16, 2016 No. 64n)

I. General provisions

This Regulation is applied by organizations that carry out research, development and technological work on their own and/or are the customer of the specified work under a contract.

2. These Regulations apply to research 1, development and technological work:

for which results were obtained that are subject to legal protection, but were not formalized in the manner prescribed by law;
for which results were obtained that are not subject to legal protection in accordance with the norms of current legislation.

4. These Regulations do not apply to the organization’s expenses for the development of natural resources (conducting geological studies of subsoil, exploration (additional exploration) of developed deposits, preparatory work in the extractive industries, etc.), expenses for the preparation and development of production, new organizations, workshops, units (start-up costs), costs for preparing and mastering the production of products not intended for serial and mass production, as well as costs associated with improving technology and production organization, improving product quality, changing product design and other operational properties carried out during the production (technological) process.

5. Information on expenses for research, development and technological work is reflected in accounting as investments in non-current assets.

Analytical accounting of expenses for research, development and technological work is carried out separately by type of work, contracts (orders).

6. The unit of accounting for expenses for research, development and technological work is an inventory object.

For the purposes of these Regulations, an inventory object is considered to be a set of expenses for work performed, the results of which are independently used in the production of products (performance of work, provision of services) or for the management needs of the organization.

II. Recognition of expenses for research, development and technological work

7. Expenses for research, development and technological work are recognized in accounting if the following conditions are met:

the amount of expenditure can be determined and confirmed;
there is documentary evidence of the completion of work (acceptance certificate for completed work, etc.);
the use of work results for production and (or) management needs will lead to the receipt of future economic benefits (income);
the use of the results of research, development and technological work can be demonstrated.

If at least one of the above conditions is not met, the organization's expenses related to the implementation of research, development and technological work are recognized as other expenses of the reporting period.

Expenses for research, development and technological work that did not produce a positive result are also recognized as other expenses of the reporting period.

(as amended by order of the Ministry of Finance of Russia dated September 18, 2006 No. 116n)

8. If expenses for research, development and technological work in previous reporting periods were recognized as other expenses, then they cannot be recognized as non-current assets in subsequent reporting periods.

(as amended by order of the Ministry of Finance of Russia dated September 18, 2006 No. 116n)

III. Composition of expenses for research, development and technological work

9. Expenses for research, development and technological work include all actual expenses associated with the implementation of these works.

Expenses for carrying out research, development and technological work include:

the cost of inventories and services of third-party organizations and persons used in performing the specified work;
costs of wages and other payments to employees directly involved in performing the specified work under an employment contract;
contributions for social needs (including unified social tax);
the cost of special equipment and special fittings intended for use as test and research objects;
depreciation of fixed assets and intangible assets used in performing the specified work;
costs for the maintenance and operation of research equipment, installations and structures, other fixed assets and other property;
general business expenses, if they are directly related to the implementation of these works;
other expenses directly related to the implementation of research, development and technological work, including testing costs.

IV. Write-off of expenses for research, development and technological work

11. Write-off of expenses for each completed research, development, and technological work is carried out in one of the following ways:

linear method;

a method of writing off expenses in proportion to the volume of products (works, services).

12. Write-off of expenses for research, development and technological work in a linear manner is carried out evenly over the accepted period.

13. When writing off expenses in proportion to the volume of products (work, services), the determination of the amount of expenses for research, development and technological work to be written off in the reporting period is made based on the quantitative indicator of the volume of products (work, services) in the reporting period and the ratio of the total amount of expenses for specific research, development, and technological work and the entire expected volume of products (work, services) for the entire period of application of the results of a specific work.

There is no change in the accepted method of writing off expenses for specific research, development and technological work during the period of application of the results of a specific work.

(paragraph introduced by order of the Ministry of Finance of Russia dated May 16, 2016 No. 64n)

15. In case of termination of the use of the results of specific research, development or technological work in the production of products (performance of work, provision of services) or for the management needs of the organization, as well as when it becomes obvious that economic benefits will not be received in the future from the use of the results of this work, the amount of expenses for such research, development or technological work, not included in expenses for ordinary activities, is subject to write-off as other expenses of the reporting period on the date of the decision to stop using the results of this work.

17. As part of the information on the accounting policies of the organization in the financial statements, at least the following information is subject to disclosure:

on methods of writing off expenses for research, development and technological work;

on the deadlines adopted by the organization for applying the results of research, development and technological work.

1 - For the purposes of these Regulations, research work includes work related to the implementation of scientific (research), scientific and technical activities and experimental developments, defined by the Federal Law of August 23, 1996 No. 127-FZ “On Science and State scientific and technical policy" (Collected Legislation of the Russian Federation, 1996, No. 35, Art. 4137; 1998, No. 30, Art. 3607, No. 51, Art. 6271; 2000, No. 2, Art. 162; 2001, No. 1 ( part II), art. 20).

The standard that needs to be applied for accounting for R&D is PBU 17/02 “Accounting for expenses for research, development and technological work.” In this article we will talk about the basic rules for accounting for R&D in 2015.

What is R&D

According to Article 769 of the Civil Code of the Russian Federation, in economic practice there is a distinction between contracts for the performance of scientific research work and contracts for the performance of experimental design and technological work. The subject of scientific research work can only be scientific research. Development work involves the development of a sample of a new product and design documentation for it or the development of new technology. In business activities, research is much less common than development work. After all, the latter are more closely related to the production processes of the enterprise.

One of the main features of an R&D contract is the novelty of the results obtained and the possibility of creating new objects (inventions, utility and industrial designs). Another distinctive feature of these works is their creative nature. But this, naturally, comes with the risk of getting a so-called “negative result.”

A “negative result” of R&D is usually understood as a result that arose due to circumstances beyond the control of the performer and which cannot subsequently be used to extract economic benefits. In addition, this result is not a solution to the problem posed in R&D.

By virtue of paragraph 3 of Article 769 of the Civil Code of the Russian Federation, the risk of inability to fulfill the R&D contract is borne unless otherwise provided by the contract or law.

How PBU 17/02 is used in practice - accounting for R&D

PBU 17/02 applies to commercial organizations (with the exception of credit institutions). The document does not regulate accounting for R&D performers. For them, R&D expenses are expenses for ordinary activities. Such expenses are reflected according to the rules set out in the Accounting Regulations “Expenses of the Organization” (PBU 10/99). It was approved by order No. 33n dated 05/06/99.

Thus, PBU 17/02 is addressed to R&D customers and organizations performing such work on their own.

Often the R&D performer attracts outside contractors. Then the rules, PBU 17/02, are applied only by the customer. For other R&D participants, the expenses incurred by them fall under the norms of PBU 10/99.

PBU 17/02 does not apply to unfinished work. It is also not used in relation to the costs of developing natural resources, costs of preparing and mastering production and costs associated with improving production technology, improving product quality, changing its design and other operational properties carried out in the production (technological) process.

In practice, PBU 17/02 is applied in two cases:

if during R&D a result is obtained that is subject to legal protection, but is not formalized in the manner prescribed by law;
if during R&D a result is obtained that is not subject to legal protection.

How to account for R&D expenses in accounting

R&D expenses are reflected in accounting as investments in non-current assets of the enterprise.

Analytical accounting is carried out separately by type of work and orders, that is, actual costs are recorded for each topic (contract, order) in accordance with the established calculation items of the estimated cost, corresponding costs, overhead estimates and production costs by element.

By analogy with intangible asset objects, the unit of accounting for R&D expenses is an inventory object, representing a set of expenses for work performed, the results of which are already used in the production of products (works, services) or for management needs.

The rules for recognizing expenses are provided for in paragraph 7 of PBU 17/02. It states that R&D expenses are reflected in accounting only if the following conditions are met:

the amount of expenditure can be determined and confirmed;
the execution of work is documented (Acceptance Certificate for completed work, etc.);
the result of the work will be used for production or management needs and will lead to the receipt of economic benefits (income);
the use of R&D results can be demonstrated.

If at least one of these conditions is not met, the organization's expenses related to R&D are considered non-operating expenses of the reporting period. The same applies to expenses for work that did not produce a positive result (negative R&D result).

The list of main expenses associated with R&D is given in Section III of PBU 17/02. It is not exhaustive. The organization, at its discretion, may attribute to R&D expenses all expenses directly related to the performance of such work. This could be, for example, expenses for holding scientific and technical competitions and examinations, expenses for scientific and industrial trips, for conducting research, etc.

The procedure for writing off R&D expenses is determined by Section IV of PBU 17/02. They are written off as expenses for ordinary activities based on the expected time of using the R&D result in business activities. The organization must determine this period independently. It cannot exceed five years.

Note that you can start writing off R&D expenses not from the moment the object is registered, as is customary in the case of fixed assets or intangible assets, but after the result of the work begins to actually be used in production.

An organization can choose one of two ways to write off R&D expenses: - linear or proportional to the volume of production. Obviously, the vast majority of accountants will choose linear accounting to simplify accounting. However, if we are talking about expensive R&D, and production is planned to be increased gradually over several years, then the use of the linear method can lead to deterioration in performance

Throughout the year, R&D expenses are written off evenly, regardless of the chosen write-off method. Please note that in the event of liquidation of the organization, the remaining part of the expenses is written off at a time.

An organization, due to economic inexpediency, may terminate the use of R&D results ahead of schedule. In this case, PBU 17/02 requires that the remaining portion of R&D expenses be taken into account as non-operating expenses.

As already mentioned, the so-called “negative result” can be a consequence of R&D. Then the costs of the work performed are written off as non-operating.

Here are typical entries for accounting for R&D expenses (see table).

Typical entries for transactions related to R&D


Formation of R&D expenses
08 (sub-account “R&D”)		The actual cost of R&D performed is reflected as non-current assets
		VAT related to R&D is reflected
08 (sub-account “R&D”)		Reflects the work and services of third-party organizations related to R&D (for example, expenses for registering the result of work)
		VAT on additional work and services is reflected
If the result of R&D is an intangible asset or fixed asset...
	08 (sub-account “R&D”)	An intangible asset (fixed asset) was capitalized
68 (sub-account “Calculations with the budget for VAT”)		VAT on R&D and additional work and services is accepted for deduction (subject to payment)
If the result of R&D is other non-current assets...
	08 (sub-account “R&D”)	Part of R&D expenses was written off (during the period of use of the work result)
	08 (sub-account “R&D”)	The remaining portion of R&D expenses is written off if the organization decides to stop using the work result early

How to write off R&D expenses in tax accounting

The Tax Code deals with R&D expenses in Article 262. It allows the following R&D expenses to be taken into account for profit tax purposes:

depreciation amounts for fixed assets and intangible assets (except for buildings and structures) used to carry out scientific research and (or) development, accrued for a period defined as the number of full calendar months during which the specified fixed assets and intangible assets were used exclusively for scientific research and (or) development;
the amount of expenses for remuneration of employees participating in scientific research and (or) development, for the period of performance of scientific research and (or) development by these employees;
material expenses directly related to the implementation of scientific research and (or) development work;
other expenses directly related to the implementation of scientific research and (or) development, in the amount of no more than 75% of the amount of labor costs specified in subparagraph 2 of paragraph 2 of Art. 262 Tax Code of the Russian Federation;
the cost of work under contracts for the performance of scientific research work, contracts for the performance of development and technological work - acting as a customer of scientific research and (or) development work;
deductions for the formation of funds to support scientific, scientific, technical and innovative activities created in accordance with the Federal Law “On Science and State Scientific and Technical Policy”, in the amount of no more than 1.5% of sales revenues determined in accordance with Article 249 of the Tax Code RF.

Most of the costs can be considered as direct costs associated with carrying out the named types of work (depreciation, labor, cost of raw materials). Note: the list does not include the amounts of contributions accrued from payments and remunerations, but this means that they are not related to the implementation of scientific research and (or) development. They can simply be taken into account on a different basis, based on the fact that the list of R&D-related costs is not closed.

Particular attention must be paid to labor costs. Unless we are talking about a research institute, it is quite possible to imagine that certain employees are engaged only in research and development. At an industrial enterprise, employees are also involved in solving current production problems. That is, during the period of R&D, employees are involved in other activities. In this case, the corresponding amounts of expenses for remuneration of these workers are proportional to the time during which they were involved in performing R&D (clause 3 of Article 262 of the Tax Code of the Russian Federation). This time must be recorded in time sheets or in another document, on the basis of which the accountant will determine the proportion and allocate labor costs related to R&D.

The costs of carrying out these works are taken into account when taxing profits, regardless of the result. The taxpayer has the right to include R&D expenses as other expenses in the reporting (tax) period in which research or development (individual stages of work) was completed (paragraph 2, paragraph 4, article 262 of the Tax Code of the Russian Federation).

Exclusive rights to R&D results

Exclusive rights to the results of intellectual activity obtained as a result of R&D expenses are recognized as tax intangible assets (clause 3 of Article 257 of the Tax Code of the Russian Federation). Intangible assets are subject to depreciation in the manner established by Chapter. 25 Tax Code of the Russian Federation. Or, at the taxpayer’s option, R&D expenses are taken into account as part of other expenses associated with production and sales for two years. The chosen accounting procedure for these expenses is reflected in the accounting records for tax purposes.

To recognize an object as an intangible asset, it is necessary (clause 3 of Article 257 of the Tax Code of the Russian Federation):

the ability of the object to bring economic benefits (income) to the taxpayer;
the presence of properly executed documents confirming the existence of intangible assets and (or) the taxpayer’s exclusive right to the results of intellectual activity (including patents, certificates, other documents of protection, agreement of assignment (acquisition) of a patent, trademark).

The exclusive right to the result of intellectual activity or to a means of individualization is recognized and protected subject to such result or means (Article 1232 of the Civil Code of the Russian Federation). Recognition of intangible assets in tax accounting or the beginning of inclusion of the amount of R&D expenses in other expenses within a specified period occurs on the date of state registration of the result of intellectual activity.

In addition to the general rules, the Letter of the Ministry of Finance of Russia dated 02.02.2015 No. 03-03-06/1/3933 considers a particular situation when the taxpayer performs work to which a coefficient of 1.5 can be applied. The initial cost of the corresponding intangible asset in relation to such work is formed with a coefficient of 1.5 - a good opportunity to save on taxable profit.

In this article we will talk about how R&D costs are reflected in the accounting of organizations that are consumers of the results of this work.

Accounting for R&D expenses in such organizations is regulated by PBU 17/02 “Accounting for expenses for research, development and technological work”, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 No. 115n.

PBU 17/02 should be applied by commercial organizations performing R&D that are legal entities under the laws of the Russian Federation. But it is used only by those organizations that carry out R&D on their own and/or act as a customer (investor) under a contract to perform the specified work.

Please note that PBU 17/02 applies only in the following cases:

If R&D is not the organization’s core business;

If the R&D ordered by the organization or carried out on its own is not legally formalized (that is, a patent or certificate has not been received for the results of this R&D);

If R&D was carried out with the aim of obtaining economic benefits for the organization.

PBU 17/02 classifies as R&D only work related to the implementation of scientific (research), scientific and technical activities and experimental developments.

The definitions of these works are contained in the Federal Law of August 23, 1996 No. 127-FZ “On Science and Science and Technology Policy.” According to this Federal Law, for accounting purposes, R&D activities are recognized as follows:

1. Scientific (research) activity - activity aimed at obtaining and applying new knowledge, including:

Fundamental scientific research is experimental or theoretical activity aimed at obtaining new knowledge about the basic laws of the structure, functioning and development of man, society, and the natural environment;

Applied scientific research is research aimed primarily at applying new knowledge to achieve practical goals and solve specific problems.

2. Scientific and technical activities - activities aimed at obtaining and applying new knowledge to solve technological, engineering, economic, social, humanitarian and other problems, ensuring the functioning of science, technology and production as a single system.

3. Experimental developments - activities that are based on knowledge acquired as a result of scientific research or on the basis of practical experience, and are aimed at preserving human life and health, creating new materials, products, processes, devices, services, systems or methods and their further improvement.

In practice, PBU 17/02 is applied in two cases:

1) if during R&D a result is obtained that is subject to legal protection, but is not formalized in the manner prescribed by law;

2) if during R&D a result is obtained that is not subject to legal protection.

Legal protection of objects created, for example, as a result of development work, is confirmed by documents of the Patent Office of the Russian Federation:

A patent for an invention;

Certificate for a utility model;

Patent for an industrial design.

If such documents are not received, the organization, when accounting for R&D expenses, should be guided by PBU 17/02 (). In this case, the organization becomes the owner of the R&D result, which by its nature is nothing more than capitalized expenses. Paragraph 16 of PBU 17/02 () indicates that R&D expenses are reflected in the balance sheet as an independent group of asset items in the “Non-current assets” section.

Note!

Organizations performing scientific, technical, development or technological work must provide in the accounting policy order elements that, in accordance with PBU 17/02, are required to be disclosed in the financial statements.

Despite the fact that the main features of R&D are their scientific nature and novelty, the norms of PBU 17/02 are valid only if for some reason the result of the work is not formalized by a patent, copyright certificate or other document protecting copyright.

On the one hand, copyrighted developments can be:

Either fixed assets;

Or objects of intangible assets;

Either finished products intended for sale;

Or goods purchased for resale.

On the other hand, refusal to protect copyright for R&D results can only mean their comparative insignificance or secondary nature. That is, R&D, the accounting procedure of which is regulated by PBU 17/02, are actually developments at the level of rationalization proposals, while inventions are subject to legal protection.

Another difficult point in applying the rules established by PBU 17/02 was the need to qualify these types of expenses as expenses for ordinary activities and expenses of a capital nature.

These difficulties are due to:

Specific conditions of the organization’s activities;

The specifics of the production process;

Industry specifics;

Other factors.

Sometimes situations arise when the same type of expenses for one organization is expenses for ordinary activities, and for another - investments in.

For example, the costs of developing and mastering a new type of product that is not intended for mass and serial production should be recognized by the organization as expenses for ordinary activities. And if an organization develops a new type of product intended for mass and serial production, such costs should be considered as capital expenses, that is, as investments in non-current assets.

Therefore, paragraph 4 of PBU 17/02 establishes that this Regulation does not apply to:

1) expenses for the development of natural resources (conducting geological studies of subsoil, exploration (additional exploration) of developed deposits).

These types of expenses are carried out by geological exploration organizations in the course of carrying out their main activities (that is, they represent a separate type of work performed for sale) or by specialized structural divisions of mining organizations.

In any case, these expenses are not capital and are not included in non-current assets;

2) expenses for preparatory work in the extractive industries, and so on.

This type of cost is written off to the cost of products (works, services), as a rule, not at a time, but over several months.

For these purposes, a scheme is used according to which expenses incurred are first recorded as the debit of account 97 “Deferred expenses”, and then, in the manner and amounts established in the organization’s accounting policies, are written off to the cost of products, works or services.

Note!

Costs accounted for as part of non-current assets are distributed similarly to depreciation (that is, over a period exceeding 12 months), and deferred expenses are classified as current costs (current assets) and are written off over a period not exceeding 12 months (most often up to the end of the calendar year);

3) costs for preparation and development of production, new organizations, workshops, units (start-up costs).

In this case, costs can be written off over a period exceeding 12 months. The difference lies in the nature of the costs - start-up costs are not scientific achievements and are not novel;

4) costs for preparation and development of production of products not intended for serial and mass production.

The costs of preparation and development of individual production are included in the cost of a unit of product. Therefore, there is no need to distribute incurred expenses between types of products and reporting periods;

5) costs associated with improving technology and organization of production, improving product quality, changing product design and other operational properties carried out during the production (technological) process.

This limitation means that R&D must be carried out on separate orders with the preparation of special estimates and reporting documentation.

In accordance with the requirements of Article 8 of the Federal Law of November 21, 1996 No. 129-FZ “On Accounting” PBU 17/02 determined a new procedure for reflecting in the accounting and financial statements of organizations expenses associated with R&D, recognizing these expenses as investments (investments) in non-current assets.

It should be recalled that before PBU 17/02 came into force, organizations used various accounting accounts to reflect expenses associated with R&D in accounting:

Currently, according to the norms of PBU 17/02, all expenses of an organization aimed at investing in R&D are separately reflected in the debit of the account, subaccount 08-8 “Performance of research, development and technological work.”

Maintaining analytical accounting for account 08-8 is carried out by the organization by type of R&D performed, under contracts or orders for R&D.

Note!

PBU 17/02 was developed taking into account the fundamental rules and requirements defined by IFRS 9 “Research and Development Costs”.

According to this international standard, development costs are recognized as an asset only when they satisfy the following criteria:

1) the product or process is clearly defined and the costs attributable to the product or process can be separately identified and reliably measured;

2) the technical feasibility of the product or process can be demonstrated;

3) the organization intends to produce, sell or use the product or process;

4) it can be demonstrated that there is a market for the product or process or, if it is intended for internal use rather than for sale, its usefulness to the organization;

5) sufficient resources exist or can be demonstrated to be available to complete the project or sell or use the product or process.

Paragraph 7 of PBU 17/02 defines the conditions for recognizing R&D expenses as investments in non-current assets.

It should be noted that these conditions were determined on the basis of IFRS 9, but taking into account the provisions of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation).

PBU 17/02 establishes four such criteria (and all conditions must be met at the same time):

1) the amount of expense can be determined and confirmed by primary accounting documents;

2) there is documentary evidence of the completion of work or a stage of work (acceptance certificate for completed work) and the results of this work are accepted by the customer and formalized in accordance with the requirements of civil law;

3) the use of work results for production and (or) management needs will lead to the receipt of future economic benefits (income);

4) the use of R&D results can be demonstrated. It should be borne in mind that we are talking about the beginning of the actual application of the results obtained, about commissioning and the like.

If at least one of the above conditions is not met, the organization's expenses related to R&D are recognized as non-operating expenses of the reporting period and written off from the credit of account 08 "Investments in non-current assets" to the debit of account 91 "Other income and expenses".

Paragraph 5 of PBU 17/02 establishes the procedure for reflecting R&D expenses in accounting as investments in non-current assets.

In accordance with paragraph 5, all expenses attributed to R&D expenses are reflected in the debit of account 08 “Investments in non-current assets”.

According to paragraph 9 of PBU 17/02, expenses for research, development and technological work include all actual expenses associated with the implementation of these works, including:

1. Cost of inventories and services of third parties used in performing the specified work

2. Costs of wages and other payments to employees directly involved in performing the specified work under an employment contract;

3. Contributions for social needs (including the unified social tax);

4. The cost of special equipment and special fittings intended for use as test and research objects;

5. Costs for the maintenance and operation of research equipment, installations and structures, other fixed assets and other property;

6. General business expenses, if they are directly related to the implementation of these works;

7. Other expenses directly related to the implementation of research, development and technological work, including testing costs.

It is necessary to note the following: PBU 17/02 does not apply to costs associated with improving technology and production organization, improving product quality, changing product design and other operational properties carried out during the production (technological) process. Such costs are not long-term in nature and do not relate to R&D.

R&D expenses are reflected in accounting by the entry:

If an organization enters into an agreement to provide R&D results for use on a reimbursable basis, then it must recognize the payment due to it under the terms of the agreement as income from ordinary activities and write off R&D expenses as expenses for ordinary activities in the prescribed manner.

In practice, the question of applying Article 772 of the Civil Code of the Russian Federation often arises.

This article establishes that the R&D performer has the right to use for his own needs the results of work performed for other organizations under a contract, unless otherwise provided by this contract.

Quite often in such a situation, the executing organization mistakenly believes that if it has the right to use the results of R&D, then it should take into account the corresponding non-current assets on its balance sheet, which it has the right to depreciate.

But it's not right.

Firstly, all actual costs associated with obtaining this result of work have already been recognized by the performing organization as expenses for ordinary activities, accepted and transferred to the customer organization.

Therefore, it is unlawful to recognize the same costs twice as expenses for ordinary activities.

Secondly, the right only to use the results of work does not entail the emergence of ownership rights to these results.

This means that nothing should be reflected in the accounting records of the performing organization.

As for the customer organization, when reflecting such a business transaction in the accounting records, it must apply the rules established by PBU 17/02.

As we have already noted above, for accounting purposes in accordance with paragraph 7 of PBU 17/02, expenses for research, development and technological work that did not produce a positive result are recognized as non-operating expenses of the reporting period. In the tax accounting of an organization in accordance with paragraph 2 of Article 262 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), expenses for the specified R&D are recognized evenly over three years in an amount not exceeding 70% of the actual expenses incurred for R&D.

In accordance with paragraph 2 of Article 262 of the Tax Code of the Russian Federation, taxpayer expenses for research and (or) development work carried out in order to create new or improve existing technologies, create new types of raw materials or materials that did not give a positive result, are subject to inclusion in other expenses.

Note that due to the fact that the period of recognition of such expenses and their volume do not coincide for the purposes of accounting and tax accounting, an organization that has carried out R&D that does not produce a positive result will have a gap between the accounting and tax accounting data.

In this case, the organization will be obliged to apply the Accounting Regulations “Accounting for Income Tax Calculations” PBU 18/02, approved by Order of the Ministry of Finance of the Russian Federation dated November 19, 2002 No. 114n “On approval of the Accounting Regulations “Accounting for Income Tax Calculations” "PBU 18/02".

Note!

Federal Law No. 58-FZ of June 6, 2005 “On Amendments to Part Two of the Tax Code of the Russian Federation and Some Other Legislative Acts of the Russian Federation on Taxes and Fees” introduced amendments to Article 262 of the Tax Code of the Russian Federation, which come into force on January 1, 2006 . These changes, firstly, reduce the period for writing off R&D expenses to two years, and secondly, R&D expenses that do not produce a positive result are written off as expenses taken into account for tax purposes in full.

Paragraph 16 of PBU 17/02 contains a list of information that should be reflected in the financial statements:

On the amount of expenses attributed in the reporting period to expenses for ordinary activities and non-operating expenses by type of work;

On the amount of expenses for research, development and technological work not written off as expenses for ordinary activities and (or) non-operating expenses;

On the amount of expenses for unfinished research, development and technological work.

Since standard forms of financial statements do not provide for such detailing of data, appropriate forms must be developed and included in the explanatory note to the financial statements.

Let us remind you that that PBU 17/02 is not applied by organizations performing R&D under contracts as a performer (contractor or subcontractor). Such expenses are considered as expenses for these organizations to carry out activities aimed at generating income.

You can find out more about issues related to accounting in scientific organizations and the features of accounting for R&D in the book of JSC BKR-Intercom-Audit “Science, design from the point of view of scientific organizations and consumers.”