Research On Accounting For Stock-option Plan Of Listed Companies

Stock-option system in China is still in the stage of studying and trying out. Although it is not yet widely practiced and executed in listed companies, because of its firm basic theory and its strong incentive function, it has extensive utility and good prospects. Stock-option plan relates to many aspects, and Stock-option accounting is one of its core content. Whether the accounting is scientific and suitable will influence the execution and regulation of the system, and make it impossible to bring its incentive function into full play.In China stock-option accounting is still a new question for study, and there is no special and relative accounting principle for it. In the meaning time, in academic circle, there are also many disputes for its specific treatment. This is why some corporations who are trying the stock-option plan make accounting records quite informally, and some are even erroneous. It is estimated that more and more listed companies will use stock-option plan as a pattern of stimulating, but as their accounting process is not uniform, formal and lack of openness, it may cause accounting information untruthful in a common sense. Thus, under this circumstances, being guided by modern accounting theory, and by fully absorbing Chinese and international researching and practicing achievements of stock-option accounting, and also, by combining the incentive theory and company's financing theory, merging theoretical analysis and case statement, the paper mainly uses the approach of normative research to study stock-option accounting of listed companies.After defining the significance of stock-option accounting and the core problem of its study, based on modern accounting theory, the paper studies several problems as how to recognize and in what way to measure and disclose in stock-option accounting.In the aspect of recognition, starting from the accounting recognition theory, and combining the analysis of the character of stock-option payment, the paper discusses the problems as whether the stock-option payment is valuable, whether it satisfy the conditions of recognition, whether it should be recognized in the financial statements and how to recognize in a statement, and also about what kind of rules it should obey when recognizing. In the aspect of measurement, by analyzing and comparing severalmeasuring method, combining the international developing trend, the paper discusses the problems as what kind of method should be selected and used to measure stock-option payment, what kind of rules it should obey when measuring. In the aspect of disclosure, by analyzing the similarities and differences between "recognition in the statement" and "disclosure outside the statement" and the influence exerted to stockholders, employees and other social public respectively, the paper discusses that under a weak-form efficient market condition, in order to realize the "useful for decision" and "protect investor" accounting purpose, the principles that stock-option payment plan should obey.At the same time, the paper analyzes the present situation of stock-option accounting and gives its own proposal. Also, by designing an example, the paper further states the recognition and measurement for stock-option plan.The conclusion is, stock-option accounting should obey: dynamic recognition principle, fair value measurement principle, and full disclosure principle.