EXPENSES FOR THE RESEARCH AND DEVELOPMENT ACTIVITY FOR THE TAXATION PURPOSES

The paper deals with the issues of organization of tax accounting of innovative activity as one of the major shortcomings of innovative activity organization is that there is no a uniform system of accounts and accounting registers to reflect the expenses, incomes, and financial results of the Research and Development activity at an enterprise. The available accounting records, business accounts do not provide reliable data for the analysis of innovative products and their impact on the financial results of a company. The authors consider the approaches to the term “reserves” according to IFRS 37 and the domestic standard PBU 8/2010. The paper presents the classification of reserves by the nature of their occurrence. The authors give the recommendations on the disclosure of the accrued expenses for the Research and Development Activity in the accounts of book records, as well as the recommendations on the use of the reserves at the research stage, in particular, they show the order of accounting records at the moment of business transaction execution and the last day of a month (quarter). The necessity to form the valuation reserves for innovation activity is proved. For the accounting of the reserves for innovative activities, the authors offer to use a vacant number in the first section of the Chart of accounts - account 06 called “Allowance for innovative activities”. The paper contains the recommendations for the disclosure of transactions on the recording of the reserve for innovative activity in accounting. The authors developed the procedure for the creation of the reserve for future R & D expenditures. Besides, the authors demonstrated the application of the proposed method on the digital material of a particular enterprise - Kamyshinsky Plant of Locksmith Tools LLC and showed the scheme of calculation of taxable difference and deferred tax liability.

expenses, Research and Development Activity results, cost structure, reserves, taxation, reserves calculation