Final answer:
The accounting treatment for R&D in personnel varies depending on the nature of the expenditure. R&D expenses are generally recorded as operating expenses, but certain personnel-related costs may be capitalized as part of the project's cost.
Step-by-step explanation:
The accounting treatment for Research and Development (R&D) in personnel varies depending on the nature of the expenditure. In general, R&D expenses are considered as operating expenses and are recorded on the income statement. However, certain personnel-related costs incurred during the R&D process may be capitalized as part of the cost of the project.
For example, salaries and wages of employees directly involved in the R&D activities can be capitalized if they meet specific criteria. This includes the time spent on qualifying activities, such as designing, testing, and prototyping of new products or processes.
It's important to note that the accounting treatment for R&D in personnel may differ based on the accounting standards followed by the company, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). It is recommended to consult the specific accounting guidelines and policies of the company for accurate and detailed information.