Analysis On Accounting Recognition And Measurement Of Executive Stock Option

Modern enterprises the separation of ownership and management rights, client implementation of effective incentive and monitoring methods to make managers who strive to maximize corporate value, the shareholders and managers have different interests of their functions, managers can use this delegate agency, at the expense of shareholders to maximize profit at the expense of its own. But also the accounting recognition and measurement exist the most controversial. Accounting recognition and measurement of the right will play an important role to the manager's incentive stock option system.China in the 20th century into the mid 90's introduced stock options, many companies are actively in the introduction of stock options, but the research of the stock option accounting recognition and measurement become lagging, there is a certain gap with international development. February 2006 China promulgated the "Accounting Standards for Enterprises No.11-Share-based Payment" accounting standards, which for the first time the accounting recognition of stock option measurement of the specification, the measurement of accounting recognition has been in operation for orientation. However, with a wide range of stock options in the business application and development criteria will be put forward new demands, in the practice of stock options, new problems continue to emerge to managers, with the development of practice guidelines ,it was amended on added that the need constantly to improve.Firstly, analysis on accounting recognition and measurement of executive stock option, the review of the "Share Payment" the relevant provisions of the guidelines, then the main content of accounting standards for the next departure from the basic principles of economics, revealing manager economic substance of stock options, and combining the basic theory of financial accounting. Secondly, clarifying the rational development of manager dynamic of the stock options.The research method of the papers use the theory of Specifications to the accounting treatment of stock options that the two aspects of the recognition, measurement of depth. First of all, it briefly discussed the meaning from the incentive of the stock options, the basic elements of theory, motivation theory, such as different aspects, all angles to be explained, as we further explore the foundation. Then focus on accounting Standards from the lack of academic debate and analysis and discussion of departure. Stock options for managers of accounting recognition and measurement issues, confirm why the elements, when the recognition and measurement methods, and properties such as in-depth analysis, analysis of the lack of accounting standards, the opinions of many experts conducted a comprehensive review. From the practical point of view to measure the ESO issues. The managers are recognized as equity stock options under the premise of this method is obtained fair value of stock options and the best measurement methods, the best stock option grant date is measured at the conclusion. To analysis the U.S. manager of stock options accounting recognition and measurement issues, that the United States accounting standards related to employee compensation expense on the confirmation of the amortization method of selection of the straight line method of overcoming the possibility of stock manipulation, combined with American manager stock option accounting recognition and measurement practice, summed up the methods used in order to regulate the stock options of managers play a guiding role in recognition and measurement. ESO for the existence of practical problems, in combination with the U.S. manager of stock options accounting recognition and measurement methods based on, the question put forward their own solutions and ideas.In the manager's stock options become increasingly popular in the context of the world, option system has been our government's attention. We can be expected, the stock option system in China's enterprises of exploration and applications will be gradually introduced. The stock option accounting recognition and measurement is scientific, reasonable, and directly affect the incentive function of the system to play.This article is divided into five parts, each part can be stated as following: The first part of the basic theory of stock options made simple with the introduction of the theoretical basis to analyze the meaning of equity options, and stock option incentive mechanism.The second part of the stock options accounting recognition and measurement analyzes the status, and lists the status of implementation of stock options and stock options put forward for further recognition and measurement in the accounting issues arising from our application.The third part of the United States executive stock option accounting recognition and measurement for the object, analysis of payment of shares of stock options accounting standards and practices, to find out the accounting treatment for our experience.The fourth part of the payment of shares of stock options accounting recognition and measurement in the application of accounting issues arising in-depth analysis and guidance of views.