Capitalization of research and development costs in the accounting policy of innovative startups

Abstract

The relevance of the study is determined by the growing role of innovative activity in shaping the competitive advantages of enterprises and the increase in the share of expenditures on the creation of intellectual products in the structure of their resources. A distinctive feature of innovative startups is the dominance of intangible assets formed in the process of research and development. At the same time, the high level of uncertainty of the results of such activities complicates the accounting reflection of expenses and decision-making regarding their capitalization.

The purpose of the study is to substantiate approaches to the formation of accounting policies of innovative startups regarding the recognition and reflection of research and development expenses, in particular, the creation of practical tools for their accounting support.

The research uses methods of generalization, systematization, comparative analysis, and logical modeling, which made it possible to study the regulatory framework for accounting for the costs of creating intangible assets, identify the peculiarities of their application in the context of innovative activity, and formulate practical recommendations.

As a result of the study, the economic essence of research and development costs was revealed, and approaches to their differentiation by stages of implementation of an innovative project were substantiated. The work summarizes the regulatory provisions for the recognition of intangible assets and identifies the peculiarities of their application in the context of startup activities. A system of criteria for capitalizing expenses with appropriate documentary evidence is proposed, which ensures greater validity of accounting decisions. Elements of accounting policy for reflecting expenses at different stages of the innovation process are developed, and accounting organization tools are proposed, in particular, the classification of expenses, a register of expenses by project, and a form for an internally created intangible asset card.

The conclusions indicate that the practical implementation of the proposed approaches contributes to increasing the reliability of financial information, ensures transparency in the formation of the value of intangible assets, and strengthens the information support for the management of the enterprise's innovation activities.