Research On Accounting Treatment Of Stock Option Incentive

The share-based incentive mechanism has been widely used in the west for it is able to effectively solve the problems in respects of principal-agency, motivation of employees, improvement of efficiency. In China, as the value of human capital in the enterprise rising, more and more enterprises put retaining talent in the first place. The share-based incentive mechanism has been widely used in many enterprises. Following the management methods of the stock ownership incentive of the listed company promulgated by the China securities regulatory commission on January 1st,2006, the 11th of the accounting standards for enterprises about Share-based payment had been put into practice since January 1st,2007. Classifying the stock ownership incentive as costs of treatment caused a lot of debate. The particularity of the stock ownership incentive, the vulnerabilities of accounting system, and the Economic consequences brought by accounting treatment of the stock ownership incentive which make people have to concern about the stock ownership incentive accounting problems. It is necessary to attach importance to the appropriateness of accounting standards and economic consequences about the share-based incentive.In the second chapter of this thesis, it introduces the concept and the classification of share-based incentive, and points out that the nature of the stock ownership incentive is the result of development and evolution deriving from financial instruments. On the basic of the human capital property right theory, the principal-agent theory, and double factors incentive theory, the thesis expounds the significance and necessity of the stock ownership incentive. The third chapter is the core part, in the first place, it analyzes the accounting attribute of the share-based incentive from the view of accounting information quality, then discusses the accounting recognition, accounting measurement and disclosure of share-based incentive.In The fourth chapter, it takes Zhong Chuang Xince share-based incentives for an example, analyzing accounting treatment way, the influence of the share-based incentive, and incentive fees for the company's performance. The accounting treatment way of share-based incentive how to influence enterprise decision-making, shareholders decision-making and resource allocation efficiency, using those ways, it discussed economic consequences of share-based incentive accounting treatment. In The fifth chapter, on a basic of summary research in the stock ownership incentive accounting treatment, the advice of perfecting enterprise accounting treatment and suggestions of drafting incentive system in accordance with the company's development was put forward.