Changed PBU 5/01, PBU 6/01, PBU 14/2007 and PBU 17/02

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 of intellectual property (inventions, utility models 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 by the customer, 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 of the Ministry of Finance of Russia dated 05/06/99 No. 33n.

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 established by 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.

PBU 17/02

Registered with the Ministry of Justice of Russia on December 11, 2002 N 4022

MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION ORDER dated November 19, 2002 N 115n ON APPROVAL OF THE ACCOUNTING REGULATION “ACCOUNTING FOR COSTS ON RESEARCH, EXPERIMENTAL, DESIGN AND TECHNOLOGICAL WORK” PBU 17/02

(as amended by Order of the Ministry of Finance of Russia dated September 18, 2006 N 116n, dated May 16, 2016 N 64n)
In pursuance of the Program for reforming accounting in accordance with international financial reporting standards, approved by Decree of the Government of the Russian Federation dated March 6, 1998 N 283 (Meeting legislation of the Russian Federation, 1998, No. 11, Article 1290), I order:

1. Approve the attached Accounting Regulations “Accounting for expenses for research, development and technological work” PBU 17/02.

2. Put this Order into effect from January 1, 2003.

Minister A. KUDRIN Approved by Order of the Ministry of Finance of the Russian Federation dated November 19, 2002 N 115n

REGULATIONS ON ACCOUNTING “ACCOUNTING FOR COSTS FOR SCIENTIFIC, RESEARCH, EXPERIMENTAL, DESIGN AND TECHNOLOGICAL WORK” PBU 17/02

(as amended by Order of the Ministry of Finance of Russia dated September 18, 2006 N 116n, dated May 16, 2016 N 64n)

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 contracting authority for the said work.

2. This Regulation applies to research, development and technological work: ——————————— For the purposes of this Regulation, scientific 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 N 127-FZ “On Science and State Scientific and Technical Policy” (Collected Legislation of the Russian Federation, 1996, N 35, Art. 4137; 1998, N 30, Article 3607, No. 51, Article 6271; 2000, No. 2, Article 162; 2001, No. 1 (Part II), Article 20).

• 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. This Regulation does not apply to the organization’s expenses for the development of natural resources (conducting geological survey 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.

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

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 N 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 N 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 the specified work.

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 of maintaining and operating scientific 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 scientific research, development and technological work

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) reporting, can write off expenses for research, development and technological work as expenses for ordinary activities in full as they are carried out. (paragraph introduced by Order of the Ministry of Finance of Russia dated May 16, 2016 N 64n)

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

V. Disclosure of information in financial statements

16. The organization’s financial statements must reflect the following information:

• on the amount of expenses attributed in the reporting period to expenses for ordinary activities and other expenses by type of work; (as amended by Order of the Ministry of Finance of Russia dated September 18, 2006 N 116n)
• on the amount of expenses for research, development and technological work not written off as expenses for ordinary activities and (or) other expenses; (as amended by Order of the Ministry of Finance of Russia dated September 18, 2006 N 116n)
• on the amount of expenses for unfinished research, development and technological work.

If significant, information on expenses for research, development and technological work is reflected in the balance sheet under a separate group of asset items (section “Non-current assets”).

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.

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 items for calculating the estimated cost, corresponding cost calculations, estimates of overhead costs 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 production trips, for conducting patent 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 a deterioration in the financial indicators of the accounting statements.

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).

R&D accounting: in accounting, tax accounting, posting, with the contractor and the contractor

This also includes depreciation on fixed assets and intangible assets if they were used to perform R&D. The salaries of employees performing research, as well as general business expenses associated with the implementation of these works, are also a component of R&D costs.

All listed expenses in accounting are reflected in account 08 “Investments in non-current assets”. For each development completed, costs must be taken into account separately.

According to paragraph 10 of PBU 17/02, for accounting purposes, R&D expenses are written off not at once, but gradually over a certain period.

Organizations can set the deadline for writing off R&D expenses independently, depending on when they plan to receive income from this research. However, the period for writing off these expenses cannot exceed five years.

The organization must write off R&D expenses monthly in the amount of 1/12 of the annual amount of expenses for these purposes.

Write-off of expenses in accordance with paragraph 11 of PBU 17/02 can be done in one of two proposed ways: linear; or by writing off expenses in proportion to production.

The organization must apply the method selected for write-off for the entire period that the R&D result will be used. It has the right to terminate the use of this result early if it is not economically feasible. Then the part of expenses not attributed to expenses for ordinary activities must be taken into account as part of non-operating income (clause 15 of PBU 17/02).

If a “negative” result is obtained during R&D, the costs of the work performed are written off according to the accounting rules as non-operating expenses (clause 7 of PBU 17/02).

Date: 2015-12-12; view: 88; Copyright infringement

Task 8.1

Select or enter the correct answers.

1. Research aimed primarily at applying new knowledge to achieve practical goals and solve specific problems is called:

a) fundamental scientific research;

b) applied scientific research;

c) experimental developments.

2. A scientific and (or) scientific and technical result, including the result of intellectual activity, intended for implementation, is called ______________________________________.

3. PBU 17/02 does not apply:

a) to research, development and technological work, the results of which are subject to legal protection and are formalized in the prescribed manner;

b) to R&D, the results of which are subject to legal protection, but are not formalized in the manner prescribed by law;

c) to R&D, the results of which are not subject to legal protection in accordance with the norms of current legislation;

d) to unfinished research, development and technological work.

4. Accounting for R&D expenses is kept in the account:

a) 91;

b) 04;

c) 08.

5. R&D expenses are recognized in accounting if the following conditions are met:

6. Deadline for writing off R&D expenses in accounting:

a) determined by regulatory documents;

b) determined by the organization independently, but cannot be more than 3 years;

c) is determined by the organization independently, but cannot be more than 5 years.

7. R&D expenses that did not produce a positive result are recognized:

a) expenses of future periods;

b) non-operating expenses of the reporting period;

c) non-current assets in subsequent reporting periods.

8. Write-off of expenses for each completed R&D is carried out in one of the following ways:

a) linear method;

b) reducing balance;

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

9. The taxpayer’s expenses on R&D, the research for which did not produce a positive result, are included in other expenses for the purposes of calculating income tax:

a) in the reporting period;

b) in the reporting period in an amount not exceeding 70 percent of actual expenses incurred;

c) evenly over three years in an amount not exceeding 70 percent of actual expenses incurred;

d) evenly over three years.

Task 8.2

The organization carried out research and development, the results of which did not give a positive result. Fill out the business transaction log.

Table 8.1

Business transaction log

Typical entries for transactions related to R&D

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 experimental design and technological work - for the taxpayer 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 insurance premiums accrued from payments and remunerations, but this means that they are not related to the performance of scientific research and (or) development work. 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 issues. 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).

R&D: cost accounting

For tax accounting purposes, such expenses are reflected in account N01.03 “Formation of R&D expenses.”

The following stages can be distinguished in accounting for R&D expenses:

• Recognition of R&D expenses;
• Write-off of R&D expenses;
• Termination of use of R&D results.

Recognition of R&D expenses

Upon completion of R&D, it becomes clear whether the work has brought a positive result and will be independently used in the production of products (performance of work, provision of services) or for the management needs of the organization. If the result is positive, then the expenses are recognized and subsequently taken into account in account 04.2 “Expenditures on research, development and technological work.”

Recognition of R&D expenses is reflected in the document “Acceptance for accounting of intangible assets and R&D results” .

“R&D expenses” as the type of object .

If R&D did not bring a positive result, then the “Positive R&D results were obtained” should be cleared. R&D expenses that did not produce a positive result are written off as non-operating expenses.

In the “Item of non-current assets” , you must select the object of non-current assets on which expenses were accumulated until the completion of the work.

“R&D” attribute indicates the inventory item at which the costs of the work performed will be taken into account. If there is no information about an object in the directory, then you should open the form for entering a new element (the “New” in the “Actions” ), enter the name of the new element into it and then enter it into the document.

The totality of expenses for completed work is indicated in the detail “Aggregation of expenses” . the “Volume of investments in non-current assets” button, it can be filled out based on the accounting results for account 08.8 “Performance of research, development and technological work.”

The position of the switch “Write-off of R&D expenses from account 04.2” determines whether R&D expenses will be automatically written off from account 04.2 “Expenditures on research, development and technological work” by the document “Depreciation and repayment of costs” .

On the “Accounting” , the period for writing off expenses, the method of writing off (linear or proportional to the output), the account and analytics for writing off expenses are indicated.

1. New rules for recognizing R&D expenses

Since 2012, a new edition of the Tax Code of the Russian Federation has been applied.

R&D expenses are the costs of creating new or improving manufactured products (works, services), applied technologies, methods of organizing production and management (Tax Code of the Russian Federation). The Tax Code of the Russian Federation now contains a list of expenses classified as R&D expenses (previously there was no such list). It includes:

— depreciation charges for fixed assets and intangible assets (except for buildings and structures) used for R&D, for full calendar months of such use (Tax Code of the Russian Federation). Moreover, organizations using the non-linear depreciation method must form a separate subgroup for these objects within the depreciation group (Tax Code of the Russian Federation);

— remuneration of workers participating in R&D (Tax Code of the Russian Federation). In this case, only part of the payments provided for by the Tax Code of the Russian Federation is taken into account, namely: amounts accrued at tariff rates, official salaries or piece rates, accruals of an incentive or compensatory nature related to working hours and working conditions, employer contributions under compulsory insurance contracts, for accumulative part of the labor pension of employees, as well as under voluntary insurance agreements (non-state pension agreements) concluded in favor of employees, payments in favor of employees who are not on the staff of the organization (except for entrepreneurs) for the performance of work under concluded civil law agreements. If employees participating in R&D are also involved in other activities, their remuneration is taken into account in proportion to the time during which they performed scientific research (Tax Code of the Russian Federation);

— material costs associated with R&D (Tax Code of the Russian Federation). From the list of material expenses contained in the Tax Code of the Russian Federation, such R&D expenses include only those specified in - and the specified article, in particular expenses for the purchase of raw materials, tools, equipment, laboratory equipment and special clothing, as well as fuel, water, energy of all species;

- other expenses directly related to R&D, but not more than 75 percent of the amount of remuneration of employees engaged in such R&D (Tax Code of the Russian Federation);

- the cost of work under R&D contracts - for the customer of such research or development (Tax Code of the Russian Federation);

— deductions for the formation of funds to support scientific, scientific-technical and innovative activities, created by virtue of Federal Law No. 127-FZ of August 23, 1996 “On Science and State Scientific and Technical Policy” (Tax Code of the Russian Federation). The amount of such deductions should not exceed 1.5 percent of sales income, determined in accordance with the Tax Code of the Russian Federation, and is included in the expenses of the reporting (tax) period in which they were made (Tax Code of the Russian Federation). If deductions for the formation of funds to support scientific, scientific-technical and innovative activities exceed the limit provided for by the Tax Code of the Russian Federation, then the excess amounts are not taken into account when determining the income tax base (Tax Code of the Russian Federation).

Starting from 2012, the R&D expenses specified in the Tax Code of the Russian Federation reduce the taxable profit of the reporting (tax) period in which such research or development was completed (individual stages of work) and (or) the parties signed the acceptance certificate (Tax Code of the Russian Federation). Moreover, the procedure for recognizing these expenses does not depend on the result obtained. Let us remind you that until January 1, 2012.

Exclusive rights to R&D results

Exclusive rights to the results of intellectual activity received by the taxpayer 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 included 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 policy 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 a result of intellectual activity or a means of individualization is recognized and protected subject to state registration of such a 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 falls 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.

Source: Russian Tax Courier Magazine

How to record R&D expenses...

...in tax accounting

Research work involves obtaining new knowledge, and development and technological work involves applying this knowledge by developing a new product or technology. To recognize R&D costs as expenses, it is necessary that they are aimed at creating new or improving manufactured products.

If the expenses incurred are aimed at servicing existing production or monitoring compliance with technological processes, they do not apply to R&D expenses. This conclusion is contained, in particular, in the decisions of the Federal Antimonopoly Service of the West Siberian District dated February 19, 2007 No. F04-431/2007(31383-A27-15) and dated August 23, 2006 No. F04-5197/2006(25426-A27-40), paragraph 2 of the resolution of the FAS Volga District dated January 23, 2007 No. A55-3823/2006-10, as well as in the resolution of the FAS North Caucasus District dated April 25, 2005 No. F08-1522/2005-622A and the FAS Moscow District dated December 23, 2004 No. KA -A40/12097-04).

At the same time, achieving a positive result is not mandatory for recognizing R&D expenses (paragraph 3, paragraph 2, article 262 of the Tax Code of the Russian Federation). Consequently, if as a result of the research or development work carried out, no new technologies, types of raw materials, materials have been created or their improvement has not occurred, R&D costs are taken into account in the manner prescribed by paragraph 3 of paragraph 2 of Article 262 of the Tax Code of the Russian Federation.

The procedure for accounting for R&D expenses applies only to organizations that conduct such R&D independently or jointly with other organizations or on the basis of contracts under which they act as a customer (clause 2 of Article 262 of the Tax Code of the Russian Federation).

If the work is performed by an organization as a performer (contractor, subcontractor), then R&D expenses are considered as expenses for carrying out activities aimed at generating income (clause 4 of Article 262 of the Tax Code of the Russian Federation).

If, as a result of R&D, an organization has received exclusive rights to the results of intellectual activity specified in paragraph 3 of Article 257 of the Tax Code of the Russian Federation, these rights are recognized as intangible assets.

Having received a positive result, the organization can take into account R&D costs if the following conditions are met (paragraphs 1 and 2 of clause 2 of Article 262 of the Tax Code of the Russian Federation):

• work (individual stages of work) to carry out R&D has been completed;
• the parties signed the acceptance certificate;
• R&D results are used in production and (or) in the sale of goods (performance of work, provision of services).

Clause 2 of Article 262 of the Tax Code of the Russian Federation establishes that these costs are included evenly in other expenses for one year from the 1st day of the month following the month in which the research was completed (individual stages of research).

Thus, after completing the research and applying its results in the production activities of the organization, the enterprise has the right to recognize monthly R&D expenses for one year in equal parts in the amount of 1/12 of the amount of expenses incurred.

Please note that R&D expenditures that were incurred and completed during 2006 and produced positive results were written off over a period of two years, while costs incurred before 1 January 2006 were written off over a period of three years.

In this regard, organizations that incurred these costs, but did not have time to write them off in full, continue to write them off as expenses of the reporting period for two (three) years in the amount of 1/24 (1/36) of the amount of costs, respectively.

This position is reflected in the letter of the Ministry of Finance of Russia dated November 16, 2005 No. 03-03-04/1/370.

However, this letter concerns the recognition of R&D expenses during the transition period (2005-2006). But, according to the author, the provisions of this letter can also be applied to changes that have occurred since 2007.

Thus, the procedure for recognizing expenses, which has been in effect since January 1, 2007, cannot be applied to R&D that was completed before that date.

However, the Ministry of Finance of Russia, in letter dated November 7, 2006 No. 03-03-04/1/722, expressed the following position: if the date of the acceptance certificate falls in December, then next year R&D expenses can be recognized in the order established for this of the year.

In the production activities of an organization, a situation may arise in which the use of R&D results is terminated before the expiration of the period established for writing off these expenses. From the point of view of the Russian Ministry of Finance, the organization does not have the right to continue to write off these costs as expenses for profit tax purposes (letter dated May 11, 2005 No. 03-03-01-04/2/245).

The position of the Russian Ministry of Finance is based on the fact that one of the conditions for recognizing R&D expenses is the use of research and development in production or in the sale of goods. Since the organization stops using R&D results in its activities, it does not have the right to take into account expenses.

At the same time, if an organization has realized the results of R&D, but has not yet fully written off the costs of their implementation, the unaccounted amount of costs can be taken into account at a time at the time of implementation (letter of the Ministry of Finance of Russia dated April 18, 2007 No. 03-03-06/1/249).

What is included in R&D expenses and how are they accounted for?

2020

Conducted research and the creation of new technological developments must be reflected in accounting. The method of recording data depends on who is performing the work. Research can be ordered from a specialized company or carried out on your own. If research and development work (R&D) is carried out by a third-party organization, in order to take into account expenses in the form of payment for services, this company needs documentary grounds - an agreement.

IMPORTANT! An agreement with an organization performing R&D work must be in writing.

An agreement between enterprises may provide for a full cycle of research or the solution of part of the problems within the framework of a large-scale project. If the work is carried out on its own, then it is necessary to register the ongoing research activities in the database of the All-Russian Information Center. The notification forms are approved by Order of the Ministry of Education and Science dated March 31, 2016 No. 341. If the rules for reporting ongoing research developments are violated, a fine may be imposed on the organization.

Changes to PBU in 2020

In the near future, the Ministry of Finance of the Russian Federation plans to make changes to the existing PBUs. The lists of accounting standards that will undergo adjustments were approved by the Ministry of Finance of the Russian Federation in the program for the development of federal accounting standards for 2016–2018. This program was approved by Order of the Ministry of Finance dated May 23, 2020 No. 70n. More information about the development of new PBUs and their changes can be found on the official website of the Ministry of Finance at this link.

For example, in 2020 they plan to make changes to PBU 1/2008 “Accounting Policies of the Organization.”

What is included in R&D expenses?

R&D stands for “scientific research and development.” They are intended to form a new or improved technology, to invent a new type of product with more advanced characteristics. R&D expenditures can be directed towards finding improved methods of organizing production or implementing management functions.

The composition of expenses incurred by an institution in connection with ongoing R&D is determined by Art. 262 Tax Code of the Russian Federation:

1. Depreciation charges for fixed assets and intangible assets involved in the work.
2. Compensation for personnel involved in research activities or operations to develop new designs.
3. Material costs allocated for R&D. These include the purchase of exclusive rights to the results of inventive activity, to the resulting utility models or unique industrial designs. The transfer of rights is carried out through an alienation agreement. It is allowed to allocate expenses for the acquisition of rights to use intellectual property.
4. Other expense transactions that are directly related to R&D. The legislation allows them to be included in the amount of costs for research and development activities not in full, but in the amount of up to 75% of the total amount of expenses incurred.
5. Payment of invoices under R&D contracts.

NOTE! For the group of labor costs, their inclusion in R&D is possible if the personnel were engaged in research and development work. If these workers are involved in other tasks, accrued earnings are allocated to various types of expenses in proportion to the time worked at the facilities.

Tax and accounting

An additional regulatory document on the issues of reflecting R&D is Government Decree No. 988 dated December 24, 2008. It provides a list of research and development that is classified as other costs. Enterprises included in the list of work are recognized after completing the task during the period of actual completion of all activities on it. In accounting, these costs are shown with an increasing factor of 1.5. After completing research activities, the organization must not only show the costs incurred in accounting, but also submit to the Federal Tax Service a report on the R&D it conducted.

The procedure for recognizing, recording and writing off expenses related to R&D was approved by PBU 17/02. Costs are accumulated on account 08. In order for expenses to be accepted for accounting by an enterprise, a number of conditions must be met:

• the exact amount of expenses incurred can be identified;
• all expenses are documented;
• the results obtained as a result of R&D have the ability to bring benefits in the future;
• the results of the work can be shown to others through demonstration activities.

After the completion of the formation of the amount of costs on account 08, the valuation is transferred to account 04 and the status of intangible assets appears. This is only possible if the organization has legal grounds to consider the asset its own (if a patent or certificate has not been obtained, then the costs will be shown as R&D expenses). When a new asset is created, its cost is written off through regular depreciation. In the absence of rights to recognize development results as intangible assets, expenses are gradually transferred to expense accounts from account 04. The duration of the period for transferring costs to expenses for each enterprise is set individually and is fixed by accounting policies.

FOR YOUR INFORMATION! If the criteria for recognizing R&D expenses are not fully met, then the expenses should be shown in turnover on account 91.

In tax accounting, there is a rule of one-time write-off of R&D expenses after completion of work. In accounting, expenses begin to be included in R&D costs if there are signs of future economic benefits from the asset being developed:

• it is technically possible to complete the research or obtain the desired development result;
• there are options for practical application of the results of the work;
• the company is guaranteed to have enough resources to complete the project;
• there is a market for products produced using the results of research or development;
• thanks to new assets, internal problems or objectives of the institution can be solved;
• costs can be calculated and justified.

FOR REFERENCE! The difference between tax accounting and accounting in relation to R&D is that, according to the standards of the Tax Code of the Russian Federation, the costs of research and development activities can be recognized even if the desired result could not be achieved.

Write-off of expenses directly related to R&D can occur using the straight-line method or the write-off method in proportion to output. Depreciation should take into account the total useful life, but the write-off period cannot exceed 5 years. Depreciation charges are formed from the first day of the month that follows the month in which R&D expenses are transferred to the status of an intangible asset.

Accounting assumes separate reflection in the accounts of R&D costs. Analytics is carried out in the context of types of research and types of development. All incurred costs are allowed to be inventoried. Before starting the control calculation of expenses, the audit should affect the contractual documentation relating to R&D (in terms of acquired material resources, purchase of non-financial assets to support the work process).

R&D accounting entries

Typical correspondence accounts for accounting for various expenses for ongoing R&D require the participation of an active 08 account in them. Its debit accumulates the costs incurred by the company. After all activities are completed and the asset is fully ready for operation, its value, actually formed on account 08, is transferred to the debit of account 04.

In the process of development or research work in accounting, the following standard records can be used:

• D08 - K02 - at the time of writing off depreciation of the equipment involved and special-purpose fixed assets;
• D08 - K10 - when writing off the cost of material resources that were needed by the department involved in R&D;
• D08 - K70 - in the amount of accrued earnings to employees who work on improving products or creating new models and technologies;
• D08 - K69 - insurance premiums are reflected, without which it is impossible to calculate and pay wages legally to hired personnel.

When all the costs have been collected on account 08, the development product is ready and can be implemented into production or the company’s management system, account 08 is credited, and account 04 is debited when indicating the “R&D Results” subaccount. After receiving a patent or certificate, the result of development becomes an intangible asset and is transferred from the sub-account with R&D results to the sub-account of intangible assets on account 04.

If the expenses for the work of developers and researchers do not lead to the expected results, the effect is considered negative. Amounts contributed for developments that were not implemented in accordance with expectations are written off by posting D91.2 - K08.

Tags: accounting, accounting Save: Copy URL:

• Editor Maria Vlasova January 9, 2020 at 1:24 pm The entire maternity leave is divided into 2 periods:
  1. maternity leave (on sick leave) - 140 days. Calculated...

  Postponement of benefit accrual year

• lyudmila January 9, 2020 at 12:28 pm Why not, I worked for a year and the salary is different compared to 2013, 2014 Transferring the year to the calculation of benefits
• Editor Maria Vlasova January 8, 2020 at 9:00 pm Hourly or daily productivity is defined as the amount of products produced in... Labor productivity
• levseverov January 8, 2020 at 12:09 pm We gave cosmetics to the men's team. Gifts for partners on New Year's Eve
• Grigory B. January 6, 2020 at 03:26 pm What’s the question? Tariff rates for underground miners in Kuzbass for 2020
• Editor Maria Vlasova January 5, 2020 at 12:25 pm You can rely on Art. 72.1 of the Labor Code of the Russian Federation, namely “At the written request of an employee or with his written consent, he may... They do not give notice of a transfer to another job

Assistant - an electronic magazine for small businesses, entrepreneurs, accountants, lawyers, personnel officers

• Labor productivityJanuary 8
• Tariff rates for underground miners in Kuzbass for 2020 January 6
• Purchasing through an individual entrepreneur - does it make sense? January 2

on the forum Acts, Statements, Statements, Powers of Attorney, Job descriptions, Journals, Reports, Letters, Orders, Protocols, Certificates, Notifications and others. There are 784 documents in total.

• Insurance experience calculator and 8 more calculators.
• Production calendar 2020 and 3 more for regions.
• Minimum wage, subsistence minimum, KBK, OKVED and more.