Research and development (R&D) expenditures play a crucial role in innovation and economic growth, significantly contributing to technological progress and the development of new products and services. The purpose of the research is to analyze how R&D expenses are treated in accounting, exploring the differences between capitalizing them as assets and recording them as expenses and their impact on companies' valuation. Research methods used include qualitative and quantitative analysis of normative documents, examining companies' financial reports, case studies, and statistical analysis of aggregated financial data to determine the relationship between the accounting treatment of R&D expenses and financial performance. The analysis results indicate that the accounting treatment of R&D expenses varies depending on International Financial Reporting Standards (IFRS), particularly IAS 38 - Intangible Assets.