There is a research project lasting for 5 years. It costs 1000 EURO per year including patent fees. In the fourth year, a patent application was filed as the outcome of this project.

For the account value of the patent. I make it like that:

I use a balance sheet for recording the value. I put the total costs per year in the non-current asset and the account payable in each side of the balance sheet. (it is generally right?)

The second question is:
Should it be counted from the fourth year since the patent was filed or should it be started from the first year of this project?