Research On Accounting Standards Related By Economic Value Added Stock Options

Executive stock option (ESO) has been introduced into domestic as an effective incentive system in the 1990s. However, people has begun to doubt the ESO which created mythology of the world economy since Enron bankruptcy. Then some multinational companies such as Microsoft Corporation abandoned to use ESO, the stock options based on Economic Value Added(EVA) has been a new choice of multinational companies replaced of ESO. The Ministry of Finance issued the "Enterprise Accounting Standards No. 11 - shares to pay" on February 15, 2006, the new Accounting Standards regulated ESO accounting treatment, but it didn't involve the EVA stock option accounting problems. So this article based on the special of the EVA stock options, put forward proposals for improvement of new Accounting Standards.This article is divided into four sections. Chapter one focus on the background and research significance, descript the literature review and research ideas and methods; Chapter two described the theoretical basis on Accounting Standards, stock options and the EVA; Chapter three focus on the relationship between ESO and new Accounting Standards, described the operating mechanism and development trend of ESO, pointed out the improvement of new Accounting Standards by analyzing the shortcomings of stock options and the guiding role Accounting Standards played; Chapter four is the innovation and difficult part of this article, put forward proposals for improvement of new Accounting Standards, by compared with EVA stock options and ESO.This article made a in-depth analysis, comparison and discussion of"Accounting Standards No. 11", put forward positive suggestions and improvements. I hope this will be helpful for implementation and amendment of new Accounting Standards. Along with the development of the stock options incentive system, there will be more problems we need to study and explore for.