Accounting Research On The Employee Stock Bonus And Option

Taiwan's hi-tech industry has been booming for the past few decades so fast that the competition is getting more and more intense. Under such a highly competitive situation, then question how to recruit elite staff and to encourage their morale has become very important issues. Consequently, "employee stock bonus" and "employee stock option" are the most prevailing and acceptable policies. Employee stock bonus policies have been in practice for years in Taiwan; according to Taiwan-GAAP, it is appropriated from retained earnings based on face value and may not be able to reflect the operating cost effectively. In June 2000, Taiwan Ministry of Finance proposed to tax the employee stock bonus by its market value, which evoked extensive discussions. On the other hand, after the amendment of Securities and Exchange Law in June 2000, the employee stock option policies have been regulated. Therefore, it is worth to study the present employee stock bonus and employee stock option accounting principles.The objectives of this study are as follow:1. To explore Taiwan-GAAP for employee stock bonus and employee stock option policies.2. To study the arguments caused by employee stock bonus expense recognition.3. To study the impacts of employee stock bonus expense on balance sheets, income statement and statements of changes in stockholders' equity.4. To study the impacts of employee stock bonus expense on earnings per share (EPS).This research paper is focused on "employee stock bonus" and "employee stock option" accounting studies. Through in-depth research of documents and references, simulation and questionnaire analysis, the research findings and suggestions are presented for the authorities concerns.