This paper investigates the accounting treatment of research and development expenses of pharmaceutical and bio companies through Helix Smith’s case. Pharmaceutical and bio companies have traditionally recognized R&D expenditures as assets without considering whether or not they meet the requirements to recognize intangible assets. As a result of the conventional accounting treatment, information asymmetry about the possibility of successful drug development or commercialization of pharmaceutical and bio companies has increased. Investor and global investment banks have complained about arbitrary accounting for R&D expenses for pharmaceutical and bio companies. Due to these problems, the regulator has issued the Guidelines for Accounting for Pharmaceuticals and Bio-Company R&D Accounting Processing . This study explained the accounting treatment according to the regulator’s accounting guidelines for pharmaceutical and bio-company Helix Smith, and also analyzed the impact on financial statements. Also, we compared the difference with the impact of financial statements when following the accounting treatment of global pharmaceutical companies. This paper also addresses discussions regarding the application of regulatory’s accounting guidelines. Therefore, this paper will help understand the financial effects of accounting for research and development expenses.