A Research On The Accounting For Executive Stock Option

Since the first Executive Stock Option (ESO) appeared in American company in 1952, it has been favored by every states and every corporations for its superiorities on corresponding benefits between the owners and the managers, cutting down agent costs, improving enterprise values. The American studies and applies ESO firstly , so we should learn form them , though it still has much disputability on its accounting recognition and measurement . Since Shenzhen Wan Ke introduced ESO into our country, regardless of the theory or the practice has never been stopped researching and exploring ESO. But at the present time it still had not formed the unitive mature system for ESO accounting in theory . In practice the standard ESO plan really was few, and was pausing in the exploration stage.This article is based on the fundamental principle of Option Accounting combined with the current state of China , and the analysis and comparison of different viewpoints of foreign and domestic scholars, to form a personal opinion about China's Executive Stock Option .This article relies on the different perspective of executive stock option management , qualitative analysis , and collection of problems and difficulties encountered during actual operation , to discuss the implementation of China's executive stock option. At the same time, discuss and analyze the process in deploying executive stock option in China , and the recognition of stock option value in new high tech enterprises and method used in the valuation of stock option against manpower capital. In handling the entire process of executive stock option , this article introduced"manpower asset","manpower capital","convertible bonds convertible to executive stock option","deferred payment expenses"and other accounting subjects , demonstrates every individual account's structure , and explain using an example to compare the difference between accounting systems at enterprises in general verses high tech enterprises.