Research and development (R&D).
The main tasks of research and development work (R&D) are:
obtaining new knowledge in the field of development of nature and society, new areas of their application;
theoretical and experimental verification of the possibility of materialization in the production sphere of the standards of competitiveness of the organization's goods developed at the stage of strategic marketing;
practical implementation of a portfolio of innovations and innovations.
The implementation of these tasks will improve the efficiency of resource use, the competitiveness of organizations, and the living standards of the population.
Basic R&D principles:
implementation of the previously considered scientific approaches, principles, functions, methods of management in solving any problems, developing rational management decisions. The number of applied components of scientific management is determined by the complexity, cost of the control object and other factors;
orientation innovation activities to the development of human capital.
R&D is divided into the following stages of work:
fundamental research (theoretical and exploratory);
applied research;
development work;
experimental, experimental work that can be performed at any of the previous stages.
The results of theoretical studies are manifested in scientific discoveries, substantiation of new concepts and ideas, creation of new theories.
Exploratory research includes research whose task is to discover new principles for creating products and technologies; new, previously unknown properties of materials and their compounds; management methods. In exploratory research, the goal of the planned work is usually known, more or less clear theoretical basis, but by no means specific directions. In the course of such research, theoretical assumptions and ideas are confirmed, although they can sometimes be rejected or revised.
The priority importance of fundamental science in the development of innovative processes is determined by the fact that it acts as a generator of ideas and opens the way to new areas. But the probability of a positive outcome of fundamental research in world science is only 5%. In conditions market economy branch science cannot afford to engage in these studies. Fundamental research should, as a rule, be financed from the state budget on a competitive basis, and extrabudgetary funds may also be partially used.
Applied research aims to explore ways practical application previously discovered phenomena and processes. They aim at solving a technical problem, clarifying obscure theoretical issues, and obtaining specific scientific results that will later be used in experimental design work (R&D).
R&D is the final stage of R&D, it is a kind of transition from laboratory conditions and experimental production to industrial production. Developments are understood as systematic works that are based on existing knowledge obtained as a result of research and (or) practical experience.
Development is aimed at creating new materials, products or devices, introducing new processes, systems and services, or significantly improving those already produced or put into operation. These include:
development of a specific design of an engineering object or technical system (design work);
development of ideas and options for a new object, including non-technical, at the level of a drawing or other system of symbolic means (design work);
development of technological processes, i.e., ways of combining physical, chemical, technological and other processes with labor into an integral system that produces a certain useful result (technological work).
The composition of the development of statistics also includes:
creation of prototypes (original models that have the fundamental features of the innovation being created);
testing them for the time necessary to obtain technical and other data and accumulate experience, which should be further reflected in the technical documentation on the application of innovations;
certain types of design work for construction, which involve the use of the results of previous studies.
Experimental, experimental work - a type of development associated with an experimental verification of the results scientific research. Experimental work is aimed at manufacturing and testing prototypes of new products, testing new (improved) technological processes. Experimental work is aimed at the manufacture, repair and maintenance of special (non-standard) equipment, apparatus, devices, installations, stands, mock-ups, etc., necessary for R&D.
Experimental base of science - a set of experimental industries (plant, shop, workshop, experimental unit, experimental station, etc.) that perform experimental, experimental work.
Thus, the purpose of the R&D is to create (modernize) samples new technology, which can be transferred after appropriate tests to mass production or directly to the consumer. At the R&D stage, the final verification of the results of theoretical studies is carried out, the corresponding technical documentation is developed, samples of new equipment are manufactured and tested. The likelihood of obtaining the desired results increases from R&D to R&D.
The final stage of R&D is the development industrial production new product.
The following levels (areas) of implementation of R&D results should be considered.
1. Use of the results of research and development in other scientific research and development, which is the development of completed research or carried out within the framework of other problems and areas of science and technology.
2. Use of R&D results in experimental samples and laboratory processes.
3. Mastering the results of R&D and experimental work in pilot production.
4. Mastering the results of research and development and testing of prototypes in mass production.
5. Large-scale dissemination of technical innovations in production and saturation of the market (consumers) with finished products.
The R&D organization is based on the following intersectoral documentation systems:
State system standardization (FCC);
Unified system for design documentation (ESKD);
Unified system of technological documentation (ESTD);
Unified system of technological preparation of production (ESTPP);
System for the development and production of products (SRPP);
State system of product quality;
State system "Reliability in technology";
The system of labor safety standards (SSBT), etc.
The results of development work (R&D) are drawn up in accordance with the requirements of ESKD.
ESKD is a set of state standards that establish uniform interrelated rules and regulations for the preparation, execution and circulation of design documentation developed and used in industry, research, design organizations and enterprises. The ESKD takes into account the rules, regulations, requirements, as well as the positive experience in drawing up graphic documents (sketches, diagrams, drawings, etc.) established by the recommendations of ISO international organizations ( international organization on standardization), IEC (International Electrotechnical Commission), etc.
ESKD provides for an increase in the productivity of designers; improving the quality of drawing and technical documentation; deepening intra-machine and inter-machine unification; exchange of drawing and technical documentation between organizations and enterprises without re-registration; simplification of design documentation forms, graphic images, making changes to them; the possibility of mechanization and automation of the processing of technical documents and their duplication (ACS, CAD, etc.).
At the first stage of the product life cycle - the stage of strategic marketing - the market is being researched, competitiveness standards are being developed, and sections of the "Enterprise Strategy" are being formed. The results of these studies are transferred to the R&D stage. However, at this stage, the calculation step is reduced, the number of indicators of quality and resource-intensive products, organizational and technical development of production is significantly expanded, and new situations arise. Therefore, at the R&D stage, it is recommended to conduct a study of the mechanism of action of the law of competition and antimonopoly legislation.
In order to develop new products and introduce modern technologies, organizations conduct research, development and technological work (R&D). These works can be carried out by the organization itself or under an agreement with specialized organizations.
Research works include works related to the implementation of scientific activities and experimental developments, defined by the Federal Law of August 23, 1996 No. 127-FZ “On Science and State Scientific and Technical Policy”.
Scientific (research) activities - activities aimed at obtaining and applying new knowledge;
applied scientific research is research aimed at applying new knowledge to achieve practical goals and solve specific problems.
Scientific and technical activity is an activity 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.
Experimental development is an activity based on knowledge acquired as a result of scientific research or on the basis of practical experience and aimed at creating new materials, products, processes, devices, services, systems or methods and their further improvement.
In accounting and reporting, information on the costs associated with R&D is reflected in accordance with PBU 17/02 "Accounting for the costs of research, development and technological work", approved by the Ministry of Finance of the Russian Federation of November 19, 2002 No. 115n.
The Regulation is applied by organizations that perform R&D on their own or under an agreement with the customer of the specified work in relation to R&D:
According to which the results are obtained, subject to legal protection, but not formalized in the manner prescribed by law;
Based on which results are obtained that are not subject to legal protection in accordance with the norms of the current legislation.
The provision does not apply to accounting for expenses related to the improvement of technology and organization of production, with the improvement of product quality, changes in product design and other operational properties carried out during the production process.
R&D expenses are recognized in accounting only after the work is completed, provided that the following conditions are met:
The expense amount can be determined and confirmed;
There is a documentary confirmation of the performance of work (act of performance of work);
The use of the results of work for production and (or) management needs will lead to future economic benefits (income);
The use of R&D results can be demonstrated.
If at least one of the conditions is not met, the expenses of the organization associated with the implementation of R&D are recognized as other expenses of the reporting period. The composition of other expenses of the reporting period includes expenses for research work that did not give a positive result. R&D expenses recognized as other expenses in the reporting period cannot be recognized as non-current assets in subsequent reporting periods.
When work is performed by the organization's own resources, a specialized subdivision is issued a technical assignment for the development or subject of work.
When carrying out work by specialized organizations, an agreement is concluded for the implementation of R&D. The Contractor undertakes to carry out scientific research stipulated by the customer's terms of reference, and under a contract for development and technical work, to develop a sample of a new product, design documentation for it, and a new technology. The customer undertakes to accept the work and pay for it.
R&D expenses include all actual expenses associated with the performance of work. R&D expenses are accounted for as part of investments in non-current assets on account 08, subaccount 8 "R&D, development and technological work".
Analytical accounting is maintained for each type of R&D and cost elements. Analytical accounting of R&D expenses carried out on the basis of business contracts is carried out separately by type of work, contracts.
The expenses include:
Cost of inventories
Third-party company services
Costs for wages and other payments to employees directly employed in the performance of work
Deductions for social needs
The cost of special equipment and special equipment intended for use as objects of testing and research
Depreciation of fixed assets and intangible assets used in the performance of work
Costs for the maintenance and operation of research equipment
General business expenses associated with the performance of work
Other expenses directly related to R&D.
The accounting unit for R&D expenses is an inventory object.
An inventory object is a set of expenses for the work performed, the results of which are independently used in the production of products (works, services) or for the management needs of the organization.
A report is drawn up on completed R&D, and a developed sample of a new product, design documentation for it, and technical documentation for a new technology are submitted for R&D. Completed R&D are accepted for accounting on the basis of an act of acceptance of work performed.
If the performance of R&D is subject to VAT at the contractor's organization, then it presents the customer with an invoice for VAT settlement. The customer accounts for VAT on R&D costs on account 19 “VAT on acquired assets”.
R&D costs, depending on the result of the work, may be recognized as an intangible asset, other expenses or R&D expenses.
Completed R&D, on which results have been obtained that require legal protection, are objects of intellectual property. An organization can obtain a patent for a utility model, an industrial design. As an object of accounting, intellectual property is included in intangible assets.
Dt08.5 "Acquisition of intangible assets" - Kt51 - patent fee paid
Dt08.5 - Kt08.8 - the costs of R&D are included in the costs of creating intangible assets
Dt04 "Patents and Inventions" - Kt08.5 - taken into account as an object of intangible assets R&D costs, the exclusive rights to which are confirmed by a patent
Completed R&D, for which results are obtained that are not subject to legal protection or are subject to, but not formalized in the prescribed manner, are accepted for accounting as R&D expenses, provided that they comply with the criteria of PBU 17/02.
Dt08.8 - Kt10, 70, 69, 02, 60 - actual R&D costs
Dt04 "R&D expenses" - Kt08.8 - R&D costs are taken into account in the amount of actual costs of work
If the R&D carried out by the organization did not give a positive result, the costs associated with their implementation are recognized in accounting as other expenses of the reporting period.
Dt08.8 - Kt10, 70, 69, 02, 60 - actual R&D costs
Dt91 - Kt08.8 - expenses for R&D are written off
The cost of R&D expenses accepted for accounting is written off to expenses for ordinary activities from the first day of the month following the month in which the actual application of the obtained R&D results was started. There are two ways to write off expenses:
Linear
The method of writing off expenses in proportion to the volume of products (works, services)
The organization independently determines the period and method of writing off expenses. The period for writing off R&D expenses is set based on the expected period of use of the R&D results, during which they are able to bring economic benefits, but not more than five years. At the same time, the period of use cannot exceed the period of activity of the organization.
R&D expenses are written off uniformly in the amount of 1/12 of the annual amount, regardless of the method of writing off expenses chosen by the organization.
Dt20, 26 - KT04 - monthly write-off of the cost of the object of R&D expenses
When the use of R&D results is terminated, when the use of scientific research ceases to generate income, and the costs of conducting research are not fully written off, the remaining amount is included in other expenses.
Dt91.2 - Kt04 - R & D costs are included in other expenses.
For the purposes of tax accounting, Article 262 of the Tax Code of the Russian Federation provides for a three-year period for writing off R&D expenses. These expenses are evenly included in other expenses, provided that research and development is used in production and (or) in the sale of goods (works, services) from the first day of the month following the month in which such research is completed.
The organization's costs of R&D that have yielded a positive result are recognized in full for income tax purposes. Therefore, R&D performed in-house, on which the results are obtained, are not subject to VAT.
Expenses for R&D carried out in order to create new or improve applied technologies, create new types of raw materials or materials that did not give a positive result, are subject to inclusion in other expenses evenly over three years in an amount not exceeding 70% of the actual expenses incurred. The remaining 30% of R&D that did not give a positive result is not recognized as an expense for profit tax purposes, therefore they are subject to VAT.
Example 5. (Accounting for R&D expenses)
As a result of the research, a new water purification technology has been developed.
Expenses amounted to
Dt 08 Kt RUB 10,140,000 - scrapped materials
Dt 08 Kt 02 RUB 60,000 - accrued depreciation of fixed assets
Dt 08 Kt 70, 69 100 000 rub. - accrued wage and UST
Dt 08 Kt 76 RUB 2,000 - patent fee
Dt 04 Kt 08 302 000 rub. – R&D result accepted for use in work
Example 6. (Write-off of R&D expenses)
Dt 20 Kt 04 5033 rub. (302,000: 60) - monthly write-off of R&D expenses
After 40 months, it was decided to stop using the development results
302,000 - (5033 x 40) = 201320 rubles.
Dt 91.2 Ct 04 201 320 rub. included in other R&D expenses
The R&D process may consist of one or more stages. In scientific and technical activity, a stage (stage) is understood as a set of works, characterized by signs of their independent planning and financing, aimed at obtaining the intended results and subject to separate acceptance. Each separate stage can be an independent result of intellectual activity, the fact of implementation of which does not depend on the moment of completion of the work as a whole. Depending on the product life cycle, the following typical stages of R&D can be distinguished:
Study
· Conducting research, development of a technical proposal (preliminary project);
· Development of technical specifications for experimental design (technological) work.
Development
· Development of draft design;
· Development technical project;
· Development of working design documentation for the production of a prototype;
· Production of a prototype;
· Testing a prototype;
· Development of documentation
· Approval of working design documentation for the organization of industrial (serial) production of products.
Supply of products for production and operation
· Correction of design documentation for identified hidden shortcomings;
· Development of operational documentation.
Repair
· Development of working design documentation for repair work.
Retirement
· Development of working design documentation for disposal.
[edit] Example of R&D steps
The order of the stages of performing R&D for an optoelectronic device:
1. Study of existing products of this type
2. Study of the element base suitable for building the required product
3. Choice of element base
4. Development of the optical design of the product prototype
5. Development of a structural electrical circuit product prototype
6. Development of sketches of the body of the product
7. Coordination with the customer of the actual specifications And appearance products
8. Development of the electrical circuit diagram of the product
9. Study of the production base and possibilities for the production of printed circuit boards
10. Development of a test printed circuit board of the product
11. Placement of an order for the production of a test printed circuit board of the product
12. Placement of an order for the supply of the element base for the manufacture of the product
13. Placing an order for soldering a test printed circuit board of the product
14. Development of product test cable
15. Making the test cable of the product
16. Product test circuit board test
17. Writing software for a test printed circuit board of a product and a computer
18. Study of the production base and opportunities for the production of optical elements
19. Calculation of the optical elements of the product, taking into account the possibilities of production
20. Study of the production base and possibilities for the production of plastic cases, metal elements and hardware
21. Development of the design of the body of the optical box of the product, taking into account the possibilities of production
22. Placement of an order for the manufacture of optical elements and the body of the optical box of the product
23. Experimental assembly of the optical box of the product with the connection of a test printed circuit board
24. Testing the operating modes of the test printed circuit board of the product and the optical box
25. Correction of software, circuit diagram and parameters of the optical part of the product, in order to obtain the specified parameters
26. Development of the body of the product
27. Development of a printed circuit board according to the actual dimensions of the product case
28. Placement of an order for the manufacture of a body of a prototype product
29. Placement of an order for the production of a printed circuit board of a product prototype
30. Desoldering and programming the printed circuit board of the product
31. Painting the body of the prototype product
32. Prototype cable production
33. Final assembly of the product prototype
34. Testing all parameters and reliability of the product prototype
35. Writing a product manufacturing technology
36. Writing user manual for the product
37. Transfer of technical documentation, software and product prototype to the customer with the signing of documents on the termination of the contract
[edit] Types of R&D
In accordance with the normative regulation, according to the method of cost accounting, R&D is divided into:
Commodity R&D(current, custom) - work related to the normal activity of the organization, the results of which are intended for sale to the customer.
Capital R&D(initiative, for own needs) - work, the costs of which are investments in long-term assets of the organization, the results of which are used in their own production and / or provided for use by other persons.
[edit] R&D contract
The procedure for performing Commodity R&D is regulated by the contract for the performance of research, development and technological work. The legislation of the Russian Federation distinguishes two types of this agreement:
1. Contract for the implementation of scientific research work (R&D). Under the contract for the performance of research, the contractor undertakes to conduct scientific research stipulated by the technical assignment of the customer.
2. Contract for the performance of experimental design and technological work (R&D). Under the contract for the performance of R & D, the contractor undertakes to develop a sample of a new product, design documentation for it or a new technology.
The parties to the R&D contract are the contractor and the customer. The contractor is obliged to conduct scientific research personally. It is allowed to involve co-executors in the performance of R&D only with the consent of the customer. When performing OKR, the contractor has the right to involve third parties, unless otherwise provided by the contract. The rules on the general contractor and subcontractor apply to the contractor's relations with third parties in case they are involved in R&D.
Unlike other types of obligations, R&D contracts are characterized by:
· Availability of terms of reference, which defines the scope of work, establishes the object of development, the practical use of the planned results, technical and economic parameters and requirements for the level of development of the object. In addition, the terms of reference establish the stages of work, the research program and the list of documentation and products to be handed over upon acceptance of work performed under the contract.
· Establishment of the distribution of the rights of the parties to the results of the work. The rights to the results obtained may belong to the customer or the contractor, or the customer and the contractor jointly.
· Establishing a level of development that determines the status of the result obtained as an object of intellectual property or an unprotected intellectual product.
· Obligations on confidentiality of information relating to the results of intellectual activity.
specific feature R&D is that for these types of work there is a high risk of non-obtainment, for objective reasons, of the result established in the terms of reference. The risk of accidental impossibility to execute R&D contracts shall be borne by the customer, unless otherwise provided by law or contract. The contractor is obliged to immediately inform the customer about the discovered impossibility to obtain the expected results or about the inexpediency of continuing the work. The obligation to prove the fact that it is impossible to obtain the intended result lies with the performer. The decision to stop work is made by the customer.
When performing Capital R&D, the functions of the customer and the executor are carried out by the same person and drawing up an agreement, therefore, is not required. Thus, the conditions for the implementation of Capital R&D are determined by the terms of reference and calendar plan(plan scientific works) approved by the executive body of the organization and / or scientific and technical council. The fact of completion of work and the result obtained are established in the technical act approved by the executive body of the organization.
GC under the contract for the performance of research the contractor undertakes to conduct scientific research determined by the customer's technical assignment, and the customer undertakes to accept and pay for them; under a contract for the performance of R & D or technological work, the contractor undertakes to develop a sample of a new product, design documentation for it or a new technology, and the customer undertakes to accept the work and pay for it.
At the same time, a specific contract with the contractor can cover both the entire cycle of research, development and production of samples, as well as its individual stages (elements) (clause 2 of article 769 of the Civil Code).
By its legal nature such an agreement is always consensual, bilateral and reimbursable.
More about research and development
Research work (R&D) are works to resolve certain theoretical problems, conducting research in certain areas of science and technology, theoretical development of the possibility of creating a new type of machines, instruments, equipment, etc. Scientific research is divided into
- fundamental, which are aimed at obtaining new knowledge about the basic patterns of the structure, functioning and development of a person, society, and the natural environment;
- applied - are studies aimed primarily at applying new knowledge to achieve practical goals and solve specific problems.
In this cycle of scientific work, research activities are opposed to scientific and technical activities carried out through experimental design and technological work.
Development work (R&D)- these are works on modeling and creating a prototype product that meets the requirements of the customer, work on testing such a sample and preparing design documentation for such a sample. Technological work is work to create new technology, including technology developed on the basis of scientific research or related to the creation and use of a prototype product.
R&D is characterized by stages of their implementation. The following main stages of research work are distinguished in the literature:
- preparatory;
- theoretical development;
- design and production of layouts;
- experimental part;
- analysis and generalization of results;
- scientific and technical report.
Experimental design and technological work have similar stages. The breakdown of work into stages allows the customer to exercise full control over the progress of work.
At the same time, it is possible to carry out only one type of work (for example, research) without carrying out other types of work, since certain areas of scientific activity may exclude the need for experimental design or technological work. Research work is carried out in order to resolve the problem, the result of which is unclear at the stage of concluding an agreement for their implementation. The solution of a given problem or a set of problems as a result of R&D can be both self-sufficient and require further scientific and technical activities based on the results obtained. R&D can also lead to a negative result or creative failure, which in general can deprive any sense of further development.
This shows a certain similarity between the named works and contract works.
The difference between contracts for the performance of research and development work and other types of contracts
At the same time, research and development work (R&D) differs from contract work, including design and survey work, which led to their separate legal regulation in Ch. 38 GK. Unlike a contract for contract work, the result and procedure for which is clear to its parties in advance, in an R&D contract it is possible to determine only the direction of work and the general parameters of its results.
In other words, the subject of the contract for the performance of research and development work is definable, not certain. This is due to the fact that R&D and R&D are always creative in nature. At the same time, the degree of creativity is especially high in R&D. These works of a purely creative nature are aimed at obtaining new knowledge in various fields of science, and their result is embodied in a scientific report, which can be considered as a work of science. The presence of such a result brings R&D closer with a contract of author's order However, there is also a fundamental difference. The result of the contract of the author's order is valuable precisely as a work, i.e. an original creative form, while a report on the implementation of research is valuable not from the point of view of the form in which it is embodied, but from the point of view of its content: those conclusions and those recommendations that the performer makes. We can say that the value of R&D is that, according to the results of the R&D, it is not yet protectable. To obtain legal protection, it is necessary to carry out other work, to create a specific result based on research. For example, an invention is not in its pure form the result of research, but is the result of scientific and technical activities. That is why R&D is primarily an agreement on the performance of creative works, and not an agreement on the creation of a work .
For experimental design and technological work, the similarity with copyright agreements is even less important. These types of works are complex, including not only works of a creative nature, but also technical and production works aimed at making a sample, checking its characteristics, and preparing relevant documentation.
Another important feature of R&D follows from the creative nature of R&D. These works, once completed and handed over to the customer, cannot be the subject of a new contract (when the same work is repeated, the activity of the same performer ceases to be creative).
Content (rights and obligations of the parties) of contracts for the implementation of research and development work
The main condition of the contract for the implementation of research and development work is their subject, which is definable. At the same time, the degree of its determinability differs depending on the type of work:
- scientific research is more abstract;
- experimental design and technological work is more specific (aimed at specific technical solutions, the creation of specific samples of products to be used in the economy).
This difference is reflected not only in the subject of the contract, but also in the legal regulation of its other conditions (taking into account the degree of risk, the consequences of obtaining a negative result or creative failure, the procedure for acceptance and liability of the parties under the contract).
Subject of the contract determined in accordance with the terms of reference, which is agreed by the parties. The terms of reference are formed by the customer based on the requirements for the results of the work. With regard to R&D, these requirements consist of
- topics (directions) of research;
- the main issues (problems) to be solved by the contractor;
- goals of work;
- requirements for the conclusions and recommendations of the contractor (including the availability of the necessary calculations, the compliance of the conclusions and recommendations with the requirements of regulatory legal acts, technical regulations, standards, etc.).
The terms of reference for development and technological work include, in particular,
- establishment of technical characteristics and technical and economic indicators of the sample,
- requirements for the documentation and (or) technology to be developed,
- requirements for the report on the tests of the sample.
Another condition of this agreement is contract price for research and development. In accordance with Art. 778 of the Civil Code and the reference to Art. 709 of the Civil Code, the price of work can be determined according to general rules paragraph 3 of Art. 424 of the Civil Code, i.e. is not essential condition agreements, since in the absence of it, the rule on the price that, under comparable circumstances, is charged for similar work, may apply.
Price - as an essential condition (opinion)
The creative nature of R&D, the uniqueness of the ongoing research and development, excluding the possibility of their repetition in another contract, indicate that the price should be recognized an essential condition of the contract for their implementation. Indirect confirmation of this conclusion are also the rules of par. 2 p. 3 art. 1234 and par. 2 p. 5 art. 1235 of the Civil Code, according to which the price is an essential condition of the agreement on the alienation of the exclusive right and the license agreement, and the rules of paragraph 3 of Art. 424 of the Civil Code does not apply here, since the results of intellectual activity are creative and unique, which excludes the use of analogy in determining the price reimbursable contract about their use. It's in equally applies to R&D.
An essential condition of the contract for R&D is term of the contract for research and development(Article 773 of the Civil Code of the Russian Federation). This is due to the fact that the customer, as a rule, should have an idea about the time of receipt of the results of the relevant work, since an excessively long period may deprive him of interest in carrying out the work. The duration of the work depends on the complexity, volume, labor intensity and a number of other factors.
Execution of contracts for the implementation of research and development work
The difference in the degree of creativity in the conduct of research and development work is manifested in the principles of regulation of the performance of these works.
research, like the execution of the contract of the author's order, must be carried out by the performer personally. The involvement of third parties in their implementation can be carried out by the contractor only with the consent of the customer (clause 1 of article 770 of the Civil Code).
By doing development and technological work the performer has the right, unless otherwise provided by the contract, to involve third parties in its execution (this makes contracts for the performance of R&D similar to work contracts). Therefore, in paragraph 2 of Art. 770 of the Civil Code, it is established that the rules on the general contractor and subcontractor () apply to the relations of the contractor with third parties when performing such work.
For R&D, the law does not provide for the application of subcontracting rules, even if the involvement of third parties is carried out with the consent of the customer. Consequently, the procedure for regulating relations with a third party involved in the implementation of research, the customer and the contractor should be specifically stipulated in each specific case.
Work under the contract must be performed properly. First of all, it concerns the quality of the work performed, which consists of many parameters. The contractor must carry out work using the latest scientific methods, based on a complete and comprehensive study of the initial data, taking into account all possible factors that may affect the course and results of the work. The calculations carried out by the contractor must be accurate, and the conclusions must be logical, reasonable and clear in their content.
The contractor must strictly adhere to the technical and economic parameters provided for by the terms of reference. This implies that the results of the work of the performer must be:
- technically feasible and economically feasible;
- corresponding to the requirements of the customer, formulated in the terms of reference;
- as useful as possible, i.e. to combine a high scientific and technical level with minimal costs and maximum economic return.
At the same time, the achievement of these results should not be carried out to the detriment of human and civil rights, environmental and safety requirements.
Proper performance of work also means compliance with the conditions stipulated by the contract on the deadline for their implementation (paragraph 2 of article 773 of the Civil Code).
The implementation of R&D may be associated with the need for the performer to use the results of intellectual activity, the exclusive rights to which belong to third parties. In this case, he must obtain the consent of the customer on the admissibility of using such results and on the conditions for acquiring rights to them (paragraph 3 of article 773 of the Civil Code), which should ensure not only the proper performance of work, but also the subsequent use of their results achieved by the contractor using "foreign" results of intellectual activity, both by the contractor himself and by the customer, and possibly by third parties (if the customer intends to subsequently transfer the rights to the results of work to them). Unauthorized use by the performer of "foreign" results of intellectual activity is not allowed, moreover, he must take care that the results of the work do not violate the exclusive rights of other persons, and guarantee the customer the "legal purity" of the results obtained for the purpose of their further use(paragraph 6 of article 773 of the Civil Code).
When carrying out R&D, the parties (and, above all, the performer) are obliged to ensure the confidentiality of information relating to the subject of the contract, the progress of its execution and the results obtained, unless otherwise provided by the contract (clause 1 of article 771 of the Civil Code). The condition of confidentiality of the specified information, together with the obligation on each of the parties to coordinate the publication of such information with the other party (clause 2 of article 771 of the Civil Code) is another sign of the difference between the contract in question and the contract of the author's order.
The creation by the executor of a scientific report on the work done, which is a work of science, leads to the emergence of a personal non-property right for its author (authors) to publish it. However, it practically cannot be implemented in the usual way due to the established Art. 771 of the Civil Code of the principle of confidentiality of its constituent information and the resulting need to agree on a possible publication with the other party (customer). A different approach could lead to unjustified significant infringement of the rights and interests of the customer, for whom the information contained in the scientific report is of value. That's why maintaining their confidentiality is an essential condition for contractual obligations to perform R&D.
The consequences of the impossibility of further performance of work and the creative failure of the performer
An important feature of the contractual obligations under consideration, due to the creative nature of the contractor's activity, is the risk of accidental impossibility of their performance. In accordance with paragraph 3 of Art. 769 of the Civil Code, unless otherwise provided by law or contract, this risk is borne by the customer as an economically stronger party.
When performing R&D, the contractor may come to a negative result, when in the course of work it is found that it is impossible, due to circumstances beyond the contractor's control, to achieve the results that were planned at the conclusion of the contract. Of course, a negative result is also important, since its receipt contributes to the reorientation of the direction of further research work. And the sooner this becomes clear, the sooner appropriate conclusions can be drawn from it. Therefore, the contractor is obliged to inform the customer about the discovered impossibility to obtain the expected results (Article 773 of the Civil Code).
The inability to achieve the expected results entails early termination of the contract. However, the consequences of such a termination differ for R&D and for R&D. With regard to research, the customer is obliged to pay the contractor the cost of work carried out before obtaining a negative result, although not more than the corresponding part of the price of work specified in the contract (Article 775 of the Civil Code). If the impossibility of achieving the expected result (which arose through no fault of the contractor) was revealed in the course of experimental design or technological work, then the customer pays the contractor only the costs incurred, and not the entire cost of the work (Article 776 of the Civil Code).
However, even if it is found impossible to achieve the result, the contractor is obliged to transfer to the customer the results that he eventually received. When conducting research, in any case, he is obliged to draw up a report in which the work performed, the reasons and circumstances for obtaining a negative result should be clearly reflected, as well as present the achieved intermediate results (if any) and possible proposals for further research and development. research activities corresponding direction.
If the impossibility of obtaining the expected result is revealed in the course of development and technological work, the contractor is obliged to provide the customer with information on the methods of work used, the materials used, the tests carried out, the circumstances of the identified impossibility of achieving the expected result, and other necessary information.
In addition to the impossibility of achieving results in the course of work, the inexpediency of their continuation may be revealed. For example, such a situation arises when the achievement of the result of the work is theoretically possible, but the performer, for some reason, suffered a creative failure, which may be associated with the choice of research methods or the technical implementation of the model.
Creative failure does not lead to the impossibility of performing work, but, as a rule, relieves the performer from responsibility, which is explained precisely by the creative nature of the work he is doing. But such a release is possible only in the absence of the fault of the performer, i.e. only in the case when he took all measures for the proper performance of the work and showed the care and discretion that was required of him, based on the nature of the work and the terms of the contract. The contractor should be released from liability in the event that the choice of a technological or design solution was absolutely justified, the most optimal and taking into account all available initial data, but led to a creative failure, which in turn created a situation of inexpediency to continue work.
Hasty, ill-advised and thoughtless decisions cannot be justified by the creative nature of the work; if they led to the inexpediency of further work under the contract, they testify to the fault of the contractor and are the basis of his responsibility.
The procedure for the delivery and acceptance of R&D results
Due to the fact that the implementation of R&D is carried out in stages, the delivery and acceptance of the results of work can also be carried out in stages. The contractor must notify the customer of the completion of the relevant stage of work and the readiness to carry out the acceptance of its results. Acceptance of the results of work is carried out by authorized representatives of the customer or a commission specially created by the customer. Based on the results of the work, an act is signed, which serves as the basis for payment for the corresponding stage of work.
When submitting research results the contractor's representatives must defend the relevant research results, answer the questions of the customer's representatives, and, if necessary, make appropriate adjustments to the scientific and technical report. When accepting R&D, it is also possible to involve independent experts.
When submitting the results of development and technological work the performer presents an appropriate prototype or developed technology. An important condition for acceptance in this case is the availability of the results of the relevant tests (factory, laboratory, bench). If the tests revealed deficiencies, they must be eliminated within the overall period of work.
From the moment of acceptance of the results of work and the signing of an act on this, the parties have the right to use the results of work within the limits and on the terms provided for by the contract (clause 1 of article 772 of the Civil Code). Unless otherwise provided by the contract, the performer in accordance with paragraph 2 of Art. 772 of the Civil Code has the right to use the results obtained by him for his own needs. If the results of the work are granted legal protection as the results of intellectual activity, then the rights of the customer and the contractor to such results are not determined in accordance with the provisions of Ch. 38 of the Civil Code, and in accordance with the provisions of Sec. VII GK and depend on the mode of the corresponding object. For example, information that is of commercial value and that the customer wants to keep secret is subject to protection as know-how. And relations regarding a technical solution capable of being protected as an invention and for which the customer intends to obtain a patent will be governed by the rules of Ch. 72 GK.
Breach of contract and liability of the parties
The main feature of liability under contracts for the performance of research and development work is limited liability of the performer. He is obliged to compensate for the losses caused by him to the customer, but within the limits of the cost of the work in which the shortcomings were revealed, unless he proves that such a violation occurred through no fault of his (clause 1 of article 401), and unless the contract provides that they are subject to compensation within the total cost of work under the contract (clause 2 of article 777 of the Civil Code).
The contractor under the R&D contract is liable only if there is fault (clause 1 of article 777 of the Civil Code), which is associated with the peculiarities of the subject of this contract and the creative nature of the work. But at the same time, the performer is assumed guilty and must prove the absence of his guilt. If he fails, he must be found guilty of breach of contract.
Lost profits are subject to compensation only when it is expressly provided for in the contract.
Comment!
Compensation for lost profits during R&D seems to be fundamentally unjustified based on the nature of these works, as well as the significant uncertainty in the income that could be received by the customer if they were successfully completed and used. Therefore, the application of this provision is possible only in relation to the results of experimental design and technological work, and, obviously, not all of them either.
Shortcomings in the work performed, which were made due to the fault of the contractor, if they may lead to deviations from the technical and economic parameters agreed with the customer, must be eliminated by the contractor on their own and at their own expense (paragraph 4 of article 773 of the Civil Code).
The performance of research, development and technological work (R&D) on its own or with the involvement of a third-party organization can lead to the emergence of an intangible asset (IA) in accounting if the rights to such an asset are documented. However, without documents or upon receipt of a negative result in connection with the implementation of R&D, we are no longer talking about intangible assets. Then the costs are taken into account in the manner prescribed. What are the characteristics of this order?
The concept of R&D
Normative legal acts on accounting do not say what should be understood as R&D. The only mention in PBU 17/02, where it is indicated that for the purposes of applying this provision, research work includes work related to the implementation of scientific (research), scientific and technical activities and experimental developments, certain federal law dated 23.08.1996 No.127-FZ "On Science and State Science and Technology Policy".According to Art. 2 of the named law, scientific (research) is recognized as an activity aimed at obtaining and applying new knowledge. So, fundamental scientific research (referring to experimental or theoretical activity) is carried out in order to obtain new knowledge about the basic laws of the structure, functioning and development of a person, society, environment. Applied scientific research is primarily aimed at applying new knowledge to achieve practical goals and solve specific problems.
The purpose of scientific and technical activity is to obtain and apply new knowledge to solve technological, engineering, economic, social, humanitarian and other problems, to ensure the functioning of science, technology and production as a single system.
Experimental development is understood as an activity that is based on knowledge acquired as a result of scientific research or on the basis of practical experience, and is aimed at preserving human life and health, at creating new materials, products, processes, devices, services, systems or methods, and at their further improvement.
From the presented definitions, it follows that research work is associated with the acquisition and application of new knowledge that can be used, for example, to create new materials and products.
Information about what should be considered R&D can also be gleaned from the Civil Code. According to paragraph 1 of Art. 769 of the Civil Code of the Russian Federation research work is scientific research, and experimental design and technological work is the development of a sample of a new product, design documentation for it or a new technology.
The presented calculations fit into the concepts used in IAS 38 Intangible Assets. It is this standard that regulates, among other things, the procedure for accounting for research and development costs. Please note: according to international rules, all R&D that has given a positive result is recognized as intangible assets.
Based item 5IAS 38 the purpose of research and development is to obtain new knowledge. Research is original planned research undertaken with the aim of obtaining new scientific or technical knowledge. Examples of research activities are:
- activities aimed at obtaining new knowledge;
- search, evaluation and final selection of areas of application of research results or other knowledge;
- search for alternative materials, devices, products, processes, systems or services;
- formulation, design, evaluation and final selection possible alternatives new or improved materials, devices, products, processes, systems or services.
- design, construction and testing of prototypes and models before production or use;
- designing tools, templates, molds and stamps that involve new technology;
- design, construction and operation of a pilot plant, the scale of which is not economically viable for commercial production;
- design, construction and testing of selected alternatives to new or improved materials, devices, products, processes, systems or services.
When does PBU 17/02 apply?
This provision applies to R&D for which results (positive or negative) are obtained:- subject to legal protection, but not executed in the manner prescribed by law. According to paragraph 1 of Art. 1225 of the Civil Code of the Russian Federation the results of intellectual activity and equated means of individualization of legal entities, goods, works, services and enterprises that are granted legal protection (intellectual property) are, in particular, inventions, utility models, industrial designs, breeding achievements, topologies of integrated circuits, secrets production (know-how). In the cases provided for by the Civil Code, the exclusive right to the result of intellectual activity or a means of individualization is recognized and protected subject to state registration of such a result or means ( paragraph 1 of Art. 1232 of the Civil Code of the Russian Federation);
- not subject to legal protection in accordance with the norms of the current legislation.
- unfinished R&D;
- R&D, the results of which are accounted for in accounting as intangible assets. Intangible assets include R&D that gave a positive result and is executed in accordance with the procedure established by law, if the conditions listed in Clause 3 PBU 14/2007 "Accounting for intangible assets";
- expenses of the organization for the development of natural resources (conducting a geological study of the subsoil, exploration (additional exploration) of fields being developed, preparatory work in the extractive industries, etc.). Responsible for accounting for these expenses, in particular, PBU 24/2011 "Accounting for the development of natural resources". As stated in item 7IAS 38, exceptions to the scope of a standard may occur if the activities or transactions are so specialized that when they are reflected in accounting results in issues that require a special approach;
- costs for the preparation and development of production, new organizations, workshops, units (start-up costs);
- costs for the preparation and development of the production of products not intended for serial and mass production;
- costs associated with the improvement of technology and organization of production, with the improvement of product quality, changes in product design and other operational properties carried out during the production (technological) process.
We collect expenses
Recall that the provisions PBU 17/02 do not apply to pending R&D. At the same time, as pointed out by the Ministry of Finance in Information No. PZ-8/2011 "On the formation in accounting and disclosure in the financial statements of the organization of information on innovation and modernization of production" (hereinafter Information), , it can be used in relation to unfinished R&D in terms of determining the composition of costs subsequently included in the value of the generated R&D result asset.According to clause 9 PBU 17/02 R&D expenses include all actual expenses associated with the performance of such work. Here is a more detailed list of expenses, it included:
- the cost of inventories and services of third-party organizations and individuals used in the performance of R&D;
- the cost of wages and other payments to employees directly employed in the performance of R&D under an employment contract;
- deductions for social needs (including insurance contributions to state off-budget funds);
- the cost of special equipment and special equipment intended for use as objects of testing and research;
- depreciation of fixed assets and intangible assets used in R&D;
- 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 R&D;
- other costs directly related to R&D, including testing costs.
To account for the costs associated with the implementation of R & D, in Instructions for using the Chart of Accounts it is proposed to use account 08 "Investments in non-current assets", sub-account 08-8 "Performance of research, development and technological work."
Let us find out whether all R&D costs need to be accumulated on account 08, subaccount 08-8, in order to subsequently take into account the result of R&D as a non-current asset.
Timing of recognition of R&D expenses
Financiers have noticed that PBU 17/02 the moment of commencement of recognition of costs that form the value of a non-current asset of the result of R&D is not defined ( p. 2 Information). Officials consider it expedient in this regard to use the provisions IAS 38, which just outlines the issue related to the fact that it is sometimes difficult to assess whether an independently created intangible asset satisfies the recognition criteria. This may, for example, be due to the uncertainty in determining when an identifiable asset will arise that will generate expected future economic benefits.To assess whether a self-created intangible asset qualifies for recognition, due to 52IAS 38 an entity should divide the process of creating an asset into two stages: a research stage and a development stage (examples of research activities and development activities are given above). Moreover, if it is impossible to separate the research stage from the development stage within the framework of an internal project aimed at creating intangible assets, the enterprise should take into account the costs of this project as if they had been incurred only at the research stage.
An intangible asset that is the result of research (or the implementation of a research stage within an internal project) is not subject to recognition. Research costs are recognized as an expense when they are incurred ( 54IAS 38).
An intangible asset is the result of development (or the development stage of an internal project) should be recognized when, and only when, the entity can demonstrate ( 57IAS 38):
- the technical feasibility of completing the creation of the intangible asset so that it can be used or sold;
- intention to complete the creation of intangible assets and use or sell it;
- the ability to use or sell intangible assets;
- how the intangible asset will generate probable future economic benefits. Among other things, an entity can demonstrate the existence of a market for the intangible asset's products or the intangible asset itself, or, if the asset is intended to be used internally, the usefulness of such an asset;
- availability of sufficient technical, financial and other resources to complete the development, use or sale of intangible assets;
- the ability to reliably estimate the costs associated with intangible assets during its development.
Please note that if R&D expenses were initially recognized as current period expenses, they cannot be recognized as non-current assets in subsequent reporting periods ( clause 8 PBU 17/02, 71IAS 38). This does not apply to cases of an error subject to correction according to the rules. PBU 22/2010 "Correction of errors in accounting and reporting".
R&D result as an inventory item
According to clause 5 PBU 17/02 information on expenditures on R&D should be reflected in accounting as investments in non-current assets. Moreover, the accounting unit for R&D expenses is an inventory object (a set of expenses for the work performed, the results of which are independently used in the production of products (when performing work, providing services) or for the management needs of the organization). It turns out that the result of R&D is accounted for on account 08, to which we recommend opening an additional subaccount, for example, subaccount 08-9 “R&D results” (that is, the costs accumulated on subaccount 08-8 are debited to the debit of subaccount 08-9).R&D expenses (as a result of work performed) in accordance with clause 7 PBU 17/02 are recognized in accounting under the following conditions:
- the amount of expenses can be determined and confirmed;
- there is a documentary confirmation of the performance of work (act of acceptance of work performed, etc.);
- the use of the results of work for production and (or) management needs will lead to future economic benefits (income);
- the use of R&D results can be demonstrated.
R&D expenses that did not give a positive result are recognized as other expenses of the reporting period ( Debit 91-2 Credit 08-8). It's about about the reporting period in which it becomes known that the work carried out did not lead to a positive result, that is, it will not be possible to obtain economic benefits (income) ( p. 19 PBU 10/99 "Expenses of the organization").
Example 1
The company decided to develop a sample of a new industrial product on its own. The work carried out did not give a positive result. The company's costs amounted to 367,256 rubles, including 98,500 rubles for materials, 157,000 rubles for employees' wages, 48,356 rubles for social contributions (insurance contributions), and depreciation of fixed assets used in the performance of work , 37,000 rubles, for general business expenses directly related to the performance of work, 26,400 rubles.
| Contents of operation | Debit | Credit | Amount, rub. |
| R&D expenses are reflected in the form of the cost of materials used | 08-8 | 10 | 98 500 |
| Wages accrued to employees who participated in the development of a sample of a new industrial product | 08-8 | 70 | 157 000 |
| Insurance premiums accrued from the wages of the above employees | 08-8 | 69 | 48 356 |
| Depreciation accrued on fixed assets used in R&D | 08-8 | 02 | 37 000 |
| Reflected are general business expenses directly related to the implementation of R&D | 08-8 | 26 | 26 400 |
| Expenses incurred during the development of a sample of a new industrial product are included in other expenses as not having a positive result. | 91-2 | 08-8 | 367 256 |
Write-off of the cost of an asset as an R&D result
Based clause 10 PBU 17/02 R&D expenses (the cost of the R&D result) are written off to expenses for ordinary activities from the 1st day of the month following the month in which the actual application of the results obtained in the production of products (when performing work, providing services) or for the management needs of the organization. Please note: here is one of the fundamental differences from the procedure for writing off the cost of intangible assets, which begins on the 1st day of the month following the month of acceptance of intangible assets for accounting. In turn, intangible assets are taken into account not on the date of actual use of the specified asset, but on the date when it became clear that it is capable of generating economic benefits in the future. IN paragraph 97IAS 38 stated: depreciation should begin from the moment when the intangible asset becomes available for use, that is, when the location and condition of the asset make it possible to use it in accordance with the intentions of management.The write-off of a specific R&D result is carried out in one of two ways (the chosen methods of write-off must be fixed in the accounting policy of the organization): in a linear way or by the method of writing off expenses in proportion to the volume of products (works, services). By the way, in the case of intangible assets, an organization can choose a third method: the reducing balance method.
Under the straight-line method, R&D expenses are written off on a straight-line basis over the accepted period. With the method of writing off expenses in proportion to the volume of products (works, services), the amount to be written off depends on the quantitative indicator of the volume of products (works, services) in the reporting period and the ratio of the total amount of expenses for a specific research, development, technological work and the entire estimated volume products (works, services) for the entire period of application of the results of a particular work. During the period of application of the results of a particular work, it is impossible to change the accepted method of writing off expenses.
The term for writing off R&D expenses is determined by the organization independently, but taking into account the expected period of use of the results obtained, during which it is possible to obtain economic benefits (income). The established period cannot exceed 5 years and the period of the organization's activity (in relation to intangible assets, such time limits PBU 14/2007 not installed).
Let's pay attention to the next point. According to clause 14 PBU 17/02 during the reporting year, the write-off of R&D expenses to 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. If expenses are written off on a straight-line basis, this requirement is not difficult to meet. But with the method of writing off expenses in proportion to the volume of products (works, services), this is quite problematic, because the organization, most likely, does not know in advance what volume of products (works, services) will actually be received in the reporting year. In this regard, the Ministry of Finance clarifies: when using the method of writing off R&D expenses in proportion to the volume of products (works, services) during the reporting year, such write-off is carried out evenly in the amount of 1/12 of the annual amount in cases where the annual amount of expenses can be determined ( Letter No. 26.05.2011 07-02-06/91 ).
Example 2
As a result of scientific research carried out by the order of the enterprise, a third-party organization (institute) obtained information about the new properties of the raw materials extracted by the enterprise. Based on the certificate of completion, signed in August 2013, the cost of the work amounted to 364,000 rubles. In the same month, the work was paid.
Expenditures for the conducted research are included in accounting as part of the costs of the main production.
Based on the data obtained in the period from September to November 2013, the company's own department carried out work on the development of a new product sample, costs (the cost of used raw materials, special equipment, employee wages and social contributions, depreciation of fixed assets, general business expenses) amounted to 876,000 rubles.
No legal protection is granted to a new product design.
Since January 2014, the company has started manufacturing new products. R&D results are written off on a straight-line basis with an expected useful life of 5 years.
The following entries will be made in the accounting records of the enterprise:
| Contents of operation | Debit | Credit | Amount, rub. |
| In August 2013 | |||
| The cost of research carried out by a third-party organization is reflected | 20 | 60 | 364 000 |
| Reflected payment for work performed by a third-party organization | 60 | 51 | 364 000 |
| Between September and November 2013 | |||
| The costs associated with the development of a new product sample are reflected (the cost of used raw materials, special equipment, employee salaries and social contributions, depreciation of fixed assets, general business expenses) | 08-8 | 10, 70, 69, 02, 26 | 876 000 |
| November 2013 | |||
| Expenses incurred in connection with the development of a new product sample are reflected in non-current assets as a result of R & D | 08-9 | 08-8 | 876 000 |
| Since February 2014 | |||
| Reflected write-off of R&D expenses (monthly for 5 years) (876,000 rubles / 5 years / 12 months) | 20 | 08-9 | 14 600 |
Termination of use of R&D result
We are talking about the termination of the use of the results of a specific R&D in the production of products (when performing work, rendering services) or for the management needs of the organization, including in a situation where it becomes obvious that there will be no economic benefits in the future from the application of the results of this work. Then the amount of expenses for a specific work, not attributed to expenses for ordinary activities, is written off to other expenses of the reporting period as of the date of the decision to terminate the use of R&D results ( clause 15 PBU 17/02). It should be understood that in the above paragraph, the termination of the use of the results of a specific R&D means the derecognition of a non-current asset. In itself, the discontinuation of an asset, which is not related to its disposal or the fact that it can no longer generate economic benefits in the future, is not the basis for the write-off of the remaining amount of R&D expenses (the asset continues to be written off based on the established useful life), which corresponds to requirements 117IAS 38.If the results of a specific R&D are not subject to legal protection by law or are not formalized in the prescribed manner, as well as in a situation where R&D did not give a positive result, R&D expenses are accounted for according to the rules PBU 17/02. Despite the fact that this provision does not apply to R&D in progress, it can be used in terms of determining the composition of costs that will form the value of the R&D result as a non-current asset. At the stage of cost collection, it should be taken into account that, taking into account the requirements IAS 38(which the Ministry of Finance strongly recommends to focus on) research costs, in contrast to development costs, should be recognized as expenses at the time of occurrence, and not included in the cost of a non-current asset.
The cost of the result of R & D, reflected in the composition of non-current assets, is written off to expenses for ordinary activities starting from the 1st day of the month following the month of the start of its actual application, in a straight-line way or by the method of writing off expenses in proportion to the volume of products (works, services).
Expenditures on R&D that have not yielded a positive result are recognized as other expenses in the reporting period when it becomes clear that they will not bring economic benefits (income) in the future.
