Accounting of General Production Expenses in Organizations Performing R&D on Long-Term Contracts

Abstract

The article presents the results of the research, the aim of which was to study the features and problems of regulations and accounting of general production expenses in organizations performing R&D work (hereinafter-referred to as scientific organizations) under long-term contracts. Due to analysis of regulatory legal acts and the specifics of the activities of scientific organizations, the necessity of keeping records of general production expenses is justified, recommendations are made for the arrangements of such accounting, proposals for updating the accounting policy of an economic entity are formulated. The author’s recommendations on the development of a methodology for allocating overhead costs for general production and general business expenses are provided, also recommendations are made for accounting of operating costs made by related departments that are not directly involved in the performance of R&D work, but ensure execution of such work.It has been proven that in the context of the application of new Federal standards, the arrangements for accounting of general production costs in scientific organizations is a necessary condition for compliance with the basic principles and requirements of accounting.To solve the theoretical and practical problems that arise in this case, scientific organizations are proposed to approve the procedure for accounting of general production expenses by departments and cost items, the procedure for allocation of overhead costs attributable to the maintenance of these departments (taking into account the specifics of the organizations’ activities) and the list of cost items itself.While conducting the research, such general scientific methods as analysis, systematization, comparison, synthesis of reference sources, scientific literature on the topic of research, methods of scientific abstraction, deduction, logical and historical unity were used.

Keywords

• general production expenses
• cost allocation
• direct costs
• indirect costs
• scientific organization
• r&d
• ifrs