Balance the results of research and development. The result of research and development in the balance sheet and criteria

This line of the Balance Sheet reflects information on expenses for completed research, development and technological work (R&D), accounted for separately on account 04 “Intangible assets” (Instructions for using the Chart of Accounts, clause 16 of PBU 17/02).

On the issue of reflecting in the Balance Sheet the costs of unfinished R&D, accounted for in account 08 “Investments in non-current assets”, subaccount 08-8 “Performance of research, development and technological work”, there are currently two positions.

One of them is that the amount of costs for unfinished R&D participates in the formation of the indicator of line 1120 “Results of research and development” and is reflected separately on one of the lines deciphering the indicator of line 1120. This position is based on the fact that in the Example of the Explanations to The balance sheet and the Financial Results Report given in Order of the Ministry of Finance of Russia N 66n, section. 1 “Intangible assets and expenses for research, development and technological work (R&D)” includes table 1.5 “Unfinished and unregistered R&D and unfinished transactions for the acquisition of intangible assets.” At the same time, in Sect. Form I of the Balance Sheet does not have a separate line to reflect the expenses incurred by the organization for unfinished and undocumented R&D.

Another position is that the amount of such costs should not participate in the formation of the indicator for line 1120 “Results of research and development”. This conclusion follows from the title of line 1120, as well as from the fact that, according to clause 16 of PBU 17/02, in the “Non-current assets” section, information on R&D expenses is reflected in a separate group of items. At the same time, PBU 17/02 does not apply to costs for unfinished R&D (clause 3 of PBU 17/02). Therefore, line 1120 does not reflect information about such costs. These costs can be reflected in section. I “Non-current assets” on a separate line, independently entered by the organization (paragraph 4, paragraph 16 of PBU 17/02). If the indicator is insignificant, it can be reflected in line 1190 “Other non-current assets”.

Let us note that when deciding on the reflection of costs for incomplete R&D in the Balance Sheet, it is advisable to apply a unified approach to reflecting all types of investments in non-current assets.

On the reflection in the Balance Sheet of unfinished capital investments in fixed assets, see Section. 3.1.1.5 “Line 1150 “Fixed assets”.

R&D expenses, reflected separately on account 04, take into account the organization’s expenses for work performed independently or with the involvement of third-party contractors related to the implementation of scientific (research), scientific and technical activities and experimental developments, determined by the Federal Law of August 23, 1996 N 127-FZ “On science and state scientific and technical policy”. In this case, the following works are taken into account (clauses 2, 5 of PBU 17/02, Instructions for using the Chart of Accounts):

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.

In particular, R&D expenses may include (clause 9 of PBU 17/02):

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 insurance contributions to the Pension Fund, Social Insurance Fund, Compulsory Medical Insurance Fund);

the cost of special equipment and special fittings intended for use as test and research objects;

depreciation of fixed assets and intangible assets used in performing the specified work;

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

general business expenses, if they are directly related to the implementation of these works;

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

Expenses associated with R&D are initially accounted for in account 08 “Investments in non-current assets”, subaccount 08-8 “Performance of research, development and technological work” (clause 5 of PBU 17/02, Instructions for using the Chart of Accounts ). If the results of R&D are to be used in the production of products (performance of work, provision of services) or for the management needs of the organization, then the costs of their implementation are written off from the credit of account 08, subaccount 08-8, to the debit of account 04 “Intangible assets”.

Expenses for unfinished R&D, as well as R&D, the results of which are reflected in accounting as intangible assets, are not taken into account as part of R&D expenses in account 04 (clause 3 of PBU 17/02, Instructions for using the Chart of Accounts).

This line of the Balance Sheet indicates the amount of R&D expenses reflected in account 04 and not written off as of the reporting date as expenses for ordinary activities and (or) other expenses (paragraph 3 of clause 16 of PBU 17/02).

Attention!

An object subject to accounting is classified at the time of its recognition based on compliance with established criteria for asset types. Therefore, information on R&D expenses, the remaining write-off period of which as of the reporting date is 12 months or less, cannot be disclosed in section. II “Current assets” and should be included in section. I Balance Sheet (Letter of the Ministry of Finance of Russia dated December 19, 2006 N 07-05-06/302).

Line 1120 “Results of research and development” = Debit balance on account 04, analytical account of R&D expenses

In general, the indicators of line 1120 “Results of research and development” as of December 31 of the previous year and as of December 31 of the year preceding the previous year are transferred from the Balance Sheet for the previous year.

The “Explanations” column provides an indication of the disclosure of this indicator (paragraph 2 of clause 28 of PBU 4/99).

Example of filling line 1120"Results of research and development"

The organization decided to separately reflect the costs of unfinished R&D on a separate, independently entered line in section. I “Non-current assets”, and in case of insignificance of the indicator - on line 1190.

Indicators for account 04 (in terms of R&D expenses) as of the reporting date:rub.

Fragment of the Balance Sheet for 2013

Solution

The cost of research and development results is:

A fragment of the Balance Sheet in Example 1.2 will look like this.

Line 1120 “Results of research and development” displays information about the company’s costs for scientific, research, experimental, design, and technological work and services. Experts identify a huge number of types of expenses for scientific development (R&D), which have individual aspects. Even assessment commissions constantly raise questions about such data. Therefore, in order to correctly and competently fill out line 1120 of the balance sheet, you need to know several points.

What is taken into account in line 1120

It must be remembered that it is the sum of all the company's costs for research and development. The information is entered in accordance with the debit balance of account 04, namely the analytical account for accounting for total R&D expenses.

It is worth noting that until a certain point, a line was not allocated in the balance sheet for data on expenses of already completed studies. They were classified as other assets that make up the information in line 150. Further, an order was formed in the legislation of the Russian Federation, which provided explanations for filling out the balance sheet. At the same time, based on it, as such, there is no example of filling out data about undocumented and unfinished developments. They are included in line 1170, which lists the company’s other non-current assets.

Information about expenses and property is entered in accordance with the type of asset, legally assigned. Thus, accountants write down all information that is subject to write-off in less than 12 months in the first section.

There is a list of development costs that are subject to mandatory accounting:

The total value of supplies and services provided by individuals or organizations. It is worth noting that an agreement must be concluded with them;
The company's costs of paying employees involved in the provision of services. In this case, an agreement on the provision of services must be concluded between the company and hired specialists, and after that the contractor must accordingly provide an acceptance certificate for the work performed;
Costs of paying taxes and other duties. This, for example, includes the unified social tax and various pension contributions;
The total cost of specialized equipment and facilities that have been or are planned to be used as R&D facilities. For example, these include the costs of their operation, rental and maintenance;
Depreciation expenses for assets that are involved;
Organizational expenses for general business needs. At the same time, they must be involved in the performance of services.

Also, accounting must take into account all the company’s costs involved in R&D. A separate line includes expenses that are needed for the general conduct of research and development. It must indicate all the total expenses of the organization, which were legally defined in Federal Law N127.

The data is entered separately from account 04. Thus, you need to enter data about:

Scientific works and research that require legal protection, but are not legally formalized;
R&D not subject to legal protection by the state.

How to correctly enter data in line 1120

There is also a separate line where R&D expenses already carried out by the company are recorded, which have not been completed and, therefore, not documented. There are several options for entering information:

Some experts believe that they should not be included in line 1120. In their opinion, they should be entered in section 1 “Non-current assets”, which is independently generated by employees of the accounting department. Moreover, if it is not important, then it can be transferred to line 1190, where other non-current assets of the organization are taken into account;
In practice, accountants use a general approach to the design of this expense item, and also identify “sick” balance sheet items (information that shows shortcomings in the implementation of R&D).

Line 1120 must include table 1.5 “Unfinished and unregistered R&D and unfinished transactions for the acquisition of intangible assets.” It contains brief information about costs for a certain period. It should include the main amount of expenses during this time, as well as expenses that did not bring results and were accepted as intangible assets.

There are several rules to follow:

Initially, before carrying out scientific developments, all expenses are entered into account 08, where they reflect investments of non-current assets, and into subaccount 08-8, namely “R&D”;
If the results of research and development are required for organizing production, as well as for performing other company services, then they are subject to write-off in account 04 “Intangible assets”.

If research and development has not yet been completed or they have already been taken into account in the intangible assets account, then they are not reflected in account 04.

Also, line 1120 should not reflect the amount that is written off as expenses for services not related to research work.

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 the total amount of expenses for specific research, development, and technological work and the entire expected volume of products (work, services) for the entire period of application of the results of a specific work. 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.

Research and development results line 1120

PBU 17/02, Instructions for using the Chart of Accounts). If the results of R&D are to be used in the production of products (performance of work, provision of services) or for the management needs of the organization, then the costs of their implementation are written off from the credit of account 08, subaccount 08-8, to the debit of account 04 “Intangible assets”. Expenses for unfinished R&D, as well as R&D, the results of which are reflected in accounting as intangible assets, are not taken into account as part of R&D expenses in account 04 (clause 3 of PBU 17/02, Instructions for using the Chart of Accounts). This line of the Balance Sheet indicates the amount of expenses for R&D, reflected in account 04 and not written off as of the reporting date as expenses for ordinary activities and (or) for other expenses (para.

3 clause 16 PBU 17/02).

What we reflect in line 1120 of the balance sheet: research and development results

The property of the enterprise at the end of the analyzed period (2012) in monetary terms amounted to 14,196,053 thousand rubles, including: - non-current assets - 6,990,389 thousand rubles, which is 49.2% of the total value of property; — current assets — 7,205,664 thousand rubles, which is 50.7% of the total value of the property. Analysis of intangible assets revealed that its absolute and relative values are continuously increasing. Analysis of research and development results revealed that its absolute values are decreasing.

In 2011, there was a sharp decline in indicators to 71 thousand rubles, which is 1510 thousand rubles less than in 2010. By the end of the analyzed period, this figure amounted to 498 thousand rubles, which also shows a decrease compared to 2010. But compared to 2011, this figure has increased.

Research and development results

Determining “sick” items in assets Typically, the search for “sick” items begins with a study of the balance sheet asset. The share of non-current and current assets and their dynamics are determined. This structure depends on many factors, in particular: industry, technology, range of products, intensity of economic activity.

Capital-intensive industries, such as mining and metallurgy, have a higher share of non-current assets. The revaluation of fixed assets has a significant impact on the growth of the share of this part. Trade and service enterprises, as well as those that mainly use leased fixed assets, may have an insignificant share of non-current assets.

Section i. fixed assets

An increase in the share of non-current assets may indicate that the enterprise is implementing investment projects, as a result of which the value of current assets may decrease, and the value of non-current assets may increase. The next stage of the analysis is to study the composition of non-current assets. Intangible assets are a relatively new type of property for domestic enterprises.

Therefore, this type of asset is absent from the balance sheets of many of them, which is not considered a “sick” item. However, the absence of intangible assets in the balance sheet of scientific and technical organizations is a negative factor indicating A) an insufficient scientific and technical level of products or B) insufficient efforts to introduce the results of intellectual activity into economic circulation.

Attention

PBU 17/02 in the section “Non-current assets” for a separate group of items reflects information on R&D expenses. At the same time, PBU 17/02 does not apply to costs for unfinished R&D (clause 3 of PBU 17/02). Therefore, line 1120 does not reflect information about such costs.

These costs can be reflected in section. I “Non-current assets” on a separate line, independently entered by the organization (paragraph 4, paragraph 16 of PBU 17/02). If the indicator is insignificant, it can be reflected in line 1190 “Other non-current assets”. Let us note that when deciding on the reflection of costs for incomplete R&D in the Balance Sheet, it is advisable to apply a unified approach to reflecting all types of investments in non-current assets.
On the reflection in the Balance Sheet of unfinished capital investments in fixed assets, see Section. 3.1.1.5 “Line 1150 “Fixed assets”.

What does the decline in research and development results mean?

The following works are taken into account as part of R&D expenses:

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.

Expenses for carrying out scientific research, experimental design 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 (incl.

PBU 17/02, Instructions for using the Chart of Accounts). If the results of R&D are to be used in the production of products (performance of work, provision of services) or for the management needs of the organization, then the costs of their implementation are written off from the credit of account 08, subaccount 08-8, to the debit of account 04 “Intangible assets”. Expenses for unfinished R&D, as well as R&D, the results of which are reflected in accounting as intangible assets, are not taken into account as part of R&D expenses on account 04 (clause 3 of PBU 17/02). What accounting data is used when filling out line 1120 “Results of research and development?” This line of the Balance Sheet indicates the amount of expenses for R&D, reflected in account 04 and not written off as of the reporting date as expenses for ordinary activities and (or) for other expenses ( para.
3 clause 16 PBU 17/02).

A high proportion of current assets is usually assessed as a positive sign, indicating the predominance of objects of labor over means of labor in the property complex of an enterprise. It should be borne in mind that the increase in the share of current assets is a natural result of the enterprise's activities. It is caused by the following factors: A) accrual of depreciation of non-current assets, leading to a decrease in the value of non-current assets and a corresponding increase in the value of current assets; B) the formation of profits, leading to an increase in the value of current assets and capital and reserves. The cost and share of current assets may increase due to the attraction of loans and borrowings.

A decrease in the share of non-current assets may be a consequence of their sale. At the same time, their cost also decreases. And the cost and share of current assets may increase as a result.
Dt04 Kt08.08 500 thousand rubles - costs are taken into account as part of an intangible asset Example 2 The costs of Snezhinka LLC for measures to improve the technological process are estimated at 350 thousand rubles. Upon completion of all activities, the expert commission analyzed the new products and decided that it was inappropriate to introduce new technological processes. Business transactions Dt08.08 Kt02,10,70,69, etc. 350 thousand rubles - accounting for all costs incurred (for wages of employees, materials used in the research process, depreciation of necessary equipment, etc.) Dt91.02 Kt08.08 350 thousand rubles - writing off costs as other expenses due to a negative result developments.

Research and development results (line 1120)

This line reflects the amount of expenses for research and development work. Details of these expenses in a unified form are given in lines 11201 and 11202 of the balance sheet.

Accounting for such costs is regulated by the Accounting Regulations “Accounting for expenses on research, development and technological work” (PBU 17/02) * (46).

Column 3 of this line of interim reporting should reflect the amount of actual R&D expenses that formed as of the end of the reporting period (Q1, half-year or 9 months of 2011), minus written-off amounts. According to the Instructions for using the chart of accounts * (47), costs for “science” are written off without using account 05 “Amortization of intangible assets”. In this regard, the accrued amounts are written off directly to the credit of account 04 “Intangible assets” (sub-account “R&D”). That is, in the line “Results of research and development” the difference between the debit and credit balance of account 04 “Intangible assets” (sub-account “R&D”) is given.

R&D costs are reflected as part of non-current assets if the following conditions are simultaneously met in relation to them:

The amount of expenditure can be determined and confirmed;

There is documentary evidence of the completion of work (acceptance certificate for completed work, etc.);

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

The use of R&D results can be demonstrated.

When at least one of the listed conditions is not met, the costs of “science” are taken into account as part of other expenses of the reporting period.

Let us note that under a contract for carrying out scientific research work, the contractor undertakes to carry out scientific research stipulated by the technical specifications of the customer, and under a contract for carrying out experimental design and technological work - to develop a sample of a new product, design documentation for it or a new technology * (48). In turn, the customer undertakes to accept the work and pay for it. Moreover, the terms of the R&D agreement must comply with laws and other legal acts on exclusive rights (intellectual property) * (49).

Such agreements can cover both the entire cycle of work (for example, conducting research to identify the possibility of obtaining new materials, devices, technologies, development and production of prototypes to bring them to the stage of industrial application), and their individual stages. These contracts are characterized by the presence of technical specifications and the establishment of limits and conditions for the parties to use the results obtained * (50).

From an analysis of the norms of current legislation, we can conclude that research work involves obtaining new knowledge. At the same time, development and technological work involves the application of this knowledge and the development of a new product or technology. That is, as a result of performed R&D, a new result is created, which is or is not subject to legal protection.

In some situations, R&D expenses are not included in intangible assets. For example, for those works that did not give a positive result or were not completed. Such costs are recognized as other expenses of the reporting period * (51).

Often companies pay for development and receive one or another technical documentation. For example, design work for the manufacture of products. At the same time, the contract for its production stipulates that the holder of the original documents is the customer. Is such documentation an intangible asset? In most cases no. After all, the company does not have exclusive rights to the results of this intellectual activity, formalized by the relevant documents (patents, certificates, etc.). At the same time, if such documents have been drawn up and all requirements of PBU 14/2007 have been met in relation to this development, then R&D expenses should be accepted for accounting as intangible assets.

Let us remind you that accounting of R&D expenses for which results are obtained that are subject to legal protection but are not formalized in the prescribed manner is carried out taking into account PBU 17/02. This document does not apply, in particular, to the costs of preparation and development of production, workshops and units (start-up costs); costs for preparation and development of production of products not intended for serial and mass production; expenses for improving technology and production with improving product quality, changing its design and other operational properties carried out during the production process * (52). Therefore, if this or that R&D result (for example, a technological sample) is intended for these purposes, then it is not taken into account as intangible material. Similar costs are other.