Internal expenditure (R&D)
Is expenditure on Scientific Research and Technological Development activities carried out within the Research Unit or Centre of the company, whatever the origin of the funds might be, during the reference year. Expenditure carried out outside the centre, but in support of internal R&D work is also included.
By agreement, deductible VAT invoiced by suppliers is excluded. According to the nature of the expenditure we distinguish between current expenditure and capital expenditure.
Current Expenditure
- Personnel Expenditure: Includes the total payments to personnel of any kind, including social security on behalf of the company. Travel expenses are included under the heading «Other current expenditure ».
- Other current expenditure: Small material and differing supplies (expenditure on material not considered to be capital goods), Energy (water, gas, electricity and any other source of energy), Maintenance and small repairs, Rent and cleaning of premises, Purchase of services (e.g.: cost of using computers), Payment proportional to the R&D activity of indirect personnel (security, maintenance, etc.) and Travelling expenses.Real current or assigned expenses are excluded, under the amortisation concept.
Capital Expenditure
Is the gross capital investment on land, buildings, important improvement work, inventory material, installations and equipment, carried out during the reference period by the company and destined to the R&D activities, whatever the kind of financing.