Research on the Disclosure of R & D Expenses in

High-tech Enterprises

Chunming Du

, min Weng

and NingNing Chen

School of economics and management, Huaiyin Normal University, Huaian, China

Jiangsu Polytechnic of Finance and Economics, Huaian, China

dcm_110@hytc.edu.cn

Keywords: High-tech Enterprises, Research and Development, Information Disclosure.

Abstract: This paper mainly analyzes the problem of information disclosure of high-tech enterprises, through the

research of the 2014 national A share market in 2011 to 2014, the annual National Torch Plan key high-tech

enterprises, the title of the research and development costs, summed up the problems in recent years, the

development of our country's research and development costs, and based on the relevant recommendations

and countermeasures.

1 INTRODUCTION

After entering the twenty-first Century, the

investment of R & D spending in our country

increases with the gradual perfection of the capital

market. At the same time, China's enterprise

accounting standards for the research and

development of information disclosure to improve,

and to carry out a certain standard. In 2001

promulgated the enterprise accounting standards,

research and development expenses all into the

current profit and loss, and the disclosure of

information on the development of enterprises are

voluntary disclosure. After the promulgation of the

new guidelines in 2007, the disclosure of research and

development has a certain role in the development of

the need for "development expenses", and at the same

time, the research and development expenses are

divided into two stages: the development and

research, and the conditions for capital are also five

specific requirements. In addition, the Commission

issued a document requiring companies in the annual

report to disclose the details of the scientific and

technological innovation of the listing Corporation

during the reporting period. However, China's

research and development of information disclosure

late, the level of disclosure of research and

development is still uneven. And disclosure of

information will lose a certain competitiveness,

companies usually meet the mandatory disclosure

requirements of the state, is not willing to disclose the

ability to actively disclose, which is not only for the

protection of business secrets, but also may involve

some tax avoidance behavior, so that the usefulness

of our country's research and development

information disclosure is questionable.

2 THE STATUS QUO OF

RESEARCH AND

DEVELOPMENT OF

HIGH-TECH ENTERPRISES

This article selected 621 enterprises in 2014, the

national Torch Plan key high-tech enterprises, the

title of the 54 companies in the A shares listed

companies (not including the GEM Listing

Corporation), the 2011 to 2014 annual report of the

disclosure status of research and development costs

of three years, and the disclosure of the status of table

Can be seen from the table, in 2007 the enterprise

accounting standards for enterprises to set up the

balance sheet of the development expenses account,

to reflect the process of enterprise development of

intangible assets can make the cost of capital

formation of intangible assets, so the 54 listing

Corporation are set up the "development expenses"

course, the sample companies are in accordance with

corporate accounting standards in the

implementation. However, the actual use of the

development expenses account is not high, only about

20% of the business use of the subject, the company

496

Chen N., Du C. and Weng M.

Research on the Disclosure of R D Expenses in High-tech Enterprises.

DOI: 10.5220/0006029304960499

In Proceedings of the Information Science and Management Engineering III (ISME 2015), pages 496-499

ISBN: 978-989-758-163-2

can really use their own intangible assets ratio is still

very low. In addition, in 2012 the Commission

requires companies to disclose total R & D

expenditures in the company's recent net assets,

operating income ratio, so the company set up R & D

expenses from the situation table, by 2011 the 10

companies quickly rose to 53 companies in 2012,

which shows that the requirements of enterprises in

the mandatory disclosure, the vast majority of

enterprises can complete the requirements. Nearly

three years of research and development expenses of

enterprises in detail disclosure of the status of the

disclosure, although the progress, but overall still in a

low level, in addition to the disclosure of management

fees and specific research and development costs two

subjects 52 enterprises, part of the cost of research

and development expenses of the two subjects and the

amount of research and development costs are not

consistent.

3 THE PROBLEM OF

RESEARCH AND

DEVELOPMENT EXPENSE

DISCLOSURE IN HIGH TECH

ENTERPRISES

3.1 Disclosure of R & D Expenses Is

Too Simple

Most enterprises in accordance with the provisions of

the disclosure of information on the development of

the situation, the basic reflection of the enterprise, the

cost of the cost of this period, the capital of this period

of research and development expenses, R & D

spending, total R & D spending accounted for the

proportion of total R & D spending accounts for

business income ratio". These can better help report

users to understand the enterprise's R & D

capabilities, but because of the company set up the

format of R & D expenses, or to the text version of

the content, and only a few companies set up the

research and development expenses, investors can not

fully understand the specific projects and progress of

the industry and other important details, and thus

causing the business and investors to obtain

information.

3.2 The Cost of Research and

Development Expenses Disclosure

Is Not Uniform

As China has not developed the R & D spending as a

mandatory set of two subjects, the name of the

enterprise is not uniform. There are companies even

in 2011 will be the subject of technical development

fees, but in 2013 it was renamed R & D fees, so that

in actual operation may exist errors. According to the

new accounting standards implemented in July 1,

2014, "the cost of the classified according to the

nature of the profit table supplementary materials" as

a mandatory disclosure of content, which also means

that the cost of R & D spending such as high-tech

enterprises should be filled out separately.

3.3 The Financial Statements Related

to the Project Can Not Be Mutually

Verified

In accordance with the provisions of the enterprise

accounting standards, the research stage expenses

should be included in the management costs, the

development phase of the cost of capital is not met,

but in the sample companies found that part of the

cost of research and development expenses in the cost

of management, a small number of enterprises will be

included in the cost of research and development of

other subjects, such as labor costs, material costs, but

the vast majority of enterprises did not explain.

Amount such as Huafeng spandex (002064) 2013

annual report, cost management "technology

development fee secondary subjects for

$89102246.82, and research and development

expenditure in the cost of R & D costs $84597679.95.

Because of the amount of the cost of management in

the two level is greater than the cost of research and

development expenses, so there is no part of the cost

to enter the management fees of the other two

subjects, but the business did not explain the matter.

3.4 The Actual Use of the

"Development Expenses" Account

Is Not High

Although the 54 listing Corporation selected in

accordance with the 2007 enterprise accounting

standards, in the balance sheet to set up the

development expenses of this subject, the

development of expenditure items should be based on

the "R & D expenditure" in the course of the "capital

expenditure" details of the final balance of the

accounts, however, the real cost of research and

development of enterprises in order to form a

relatively small proportion of intangible assets. If

Ankai (000868), although every year to set up a

development expenditure items, but annual increase

in development expenditures directly into the profit

Research on the Disclosure of R & D Expenses in High-tech Enterprises

497

Research on the Disclosure of R D Expenses in High-tech Enterprises

497

and loss, the 2013 annual report, the increase

development expenditure for $123774046.81. These

directly into profit and loss, resulting in enterprise

assets and liabilities four years of development

expenditure items are 0. From the report, the

company's four years of research and development

progress is in the development stage, but the

development of the project can not meet the

capitalization.

3.5 The Enterprise to the Development

Expense Cognition Is Not Clear

"Development project expenditure" is actually refers

to the development phase of the expense, and the

current reduction in the "included in the current profit

and loss" column refers to the capital of the conditions

of the development phase of the expenses, not

including the research phase of spending. We use the

formula: the development expenses and the research

and development expense, which is included in the

management expense ". However, many companies

have confused, such as aerospace technology

(000901) 2013 annual report disclosed the amount of

R & D spending amounted to $60390000, while in the

development of its development projects show this

year increased by 60390259.27 yuan, which indicates

that the whole of the development process is in the

development phase, but the proportion of the total

amount of this year's research and development

projects in the development of this year is 49.71%.

And not 100%. It is obvious that the amount of the

development expenses of the enterprise as the

formula of the end of the year is not right.

"Development expenses" is an asset class subject.

4 COUNTERMEASURES AND

SUGGESTIONS ON THE

DEVELOPMENT OF HIGH

TECH ENTERPRISES

4.1 Perfect Information Disclosure

System

4.1.1 Set up a Single Subject to Cost of R &

D Spending.

In the profit table and the cash flow statement, it is

recommended to develop the cost of research and

development from the management costs of stripping,

forming an independent cost project alone, so

investors can be intuitive to find the current R & D

data, and under the corresponding two subjects,

which will be able to separate the development phase

of various types of expenditure, so that investors

better understand the development of enterprises. At

the same time, a separate column shows the cost of R

& D, but also to make the investment in R & D

spending will not be linked to the cost of

management, not because of the increase in R & D

investment and make management costs increased.

Statements use this can also be more understanding

of the relationship between enterprise R & D

investment and the actual enterprise efficiency,

thereby enhancing the enterprise to implement the

power of R & D project development.

4.1.2 Strengthen the Rules for the

Identification of High-tech Enterprises

Our country is now the policy is identified as high-

tech enterprises, after three years can enjoy tax

incentives, three years after re review. Such a long

span of time, many companies are not from the

company's future development, prospects and other

strategic point of view, but from the tax incentives, to

obtain high-tech enterprise certificate to tax relief, but

its actual development projects and the feasibility of

poor correlation. So it is suggested that a review of

the three years to review each year, and the company's

research and development projects to understand the

field, and strengthen the external audit institutions, to

control the intensity of the review, to further eliminate

the generation of pseudo high tech enterprises.

4.1.3 To Speed up the Development of the

Cost of Information Disclosure

In the investigation of the listed companies, almost all

of the research and development of high-tech listing

Corporation are only disclosed in the annual report,

and in the semi annual report, quarterly and other

financial statements do not involve these information.

For the annual report of the disclosure rate, investors

get the information lag far behind, at the same time,

it will affect the value of the enterprise evaluation,

and then affect the investment decision. In addition to

the annual report, the company's annual report,

quarterly reports on the current progress of the

enterprise research, the occurrence of various types of

costs, the next step plan, etc..

4.2 Strengthen Supervision and Audit

4.2.1 Strengthen Punishment

Enterprise information disclosure violations have

ISME 2015 - Information Science and Management Engineering III

498

ISME 2015 - International Conference on Information System and Management Engineering

498

been repeated, one after another. Not only because of

the false disclosure has brought huge economic

benefits, the greater is due to be found and dealt with

the probability of overall smaller regulators. At the

same time, even after it was found that compliance

costs are smaller, making many enterprises to take the

risk. Therefore, it is recommended to further

strengthen the investigation and punishment, such as

the amount of the increase in the amount of

punishment, will investigate the information publicity

to allow more investors to know as well as the

circumstances of serious business prohibition and

then to join the securities market, etc.. In order to

maximize the deterrent to offenders, reduce the illegal

earnings.

4.2.2 Perfect Supervision Mechanism

Even if the system is very comprehensive, but if there

is no enough professional to perform, then the end is

also very difficult to have much practical effect.

Therefore, we should first increase the number of

regulators, so as to achieve a regular audit, review,

but also should pay attention to improve the

professional quality of the supervision personnel. For

the association of certified public accountants, it

should also be clear about the responsibilities of the

association. Continue to strengthen communication

and coordinating the work of the association and the

relevant government departments, associations and

government departments in monitoring and

punishment "mutual aid" cooperation mechanism. At

the same time, certified public accountants should

improve their own work independently, in the audit

of the annual report of the company given the

objective, professional advice.

4.3 Strengthen the Awareness of

Enterprise Voluntary Disclosure

High tech enterprises should correct consciousness to

the relationship between the disclosure of R & D

expenditures and enterprise's value, constantly

improve their own ability, attention to development

of the investment from the internal improve the

indexes of the enterprise, in ensuring the mandatory

disclosure requirements of authenticity, more

voluntary disclosure research and development of

enterprises, not only to disclosures about their own R

& D information of the good news, when it relates to

the failure of some of the research and development

of information, should also be disclosed, and give a

solution, face their advantages and deficiencies, do

real blue chip stocks. Some R & D information

disclosure of enterprises is often based on the

mandatory disclosure of the core competitiveness of

the enterprise, the investors make the right investment

decisions play a role. At the same time, users should

also be aware of the report, the disclosure of corporate

information, research and development, the general

will not be subject to legal constraints and strict audit

audit, so the enterprise is to exaggerate their own R &

D strength also exist some uncertainty. So investors

should improve the degree of attention to the

disclosure of research and development expenses, the

combination of mandatory disclosure and voluntary

disclosure content of rational investment.

5 KNOT THEORY

Based on the analysis of the status quo of domestic

high-tech enterprise information disclosure,

combined with China's reality, A shares listed 54

high-tech enterprises in the annual report data from

2011 to 2014, the disclosure of China's research and

development spending has increased year by year, At

the same time, from the aspects of law, the standard,

the supervision level, the enterprise implementation

level to analyze the cause of the problem, and finally

give some feasible suggestions. First improve the

information disclosure system to prevent some

enterprises use and manipulate information

disclosure rules to achieve the purpose of profit

control. Secondly, the regulatory authorities to further

modify and improve the information disclosure rules

and related laws, improve the timeliness and

effectiveness of information disclosure, and to deal

with the disclosure of false disclosure, the

requirements of information disclosure should be

gradually strict. As R & D expenditure information

measure an essential part of a high-tech enterprise of

scientific research, profitability, this paper hopes to

the suggestions to optimize China's R & D

information disclosure, for China's information

disclosure system building blocks, make a more

perfect and stable China's capital market.

REFERENCE TEST

Tuanjie Zhao, J, 2012. Paper templates. Research and

development expenses: a difficult problem in the

identification of high-tech enterprises. Financial and

accounting in Chinese.

Li Li. J, 2010. Design of the disclosure format of the report

of the listing Corporation. Financial monthly in

Chinese.

Research on the Disclosure of R & D Expenses in High-tech Enterprises

499

Research on the Disclosure of R D Expenses in High-tech Enterprises

499