Research On Share-based Payment Standard And Its Application

With the gradually application of the stock incentive mechanism in China, the Ministry Of Finance issued China Accounting Standards No.11: Share-Based Payment in 2006. Before the issuance of the new accounting standards, scholars argued about different theories of recognition and measurement which are definitely important in Share-Based Payment transaction. However, the argument finally ended up with the implement of new accounting standard: Share-Based Payment, using IFRS 2 for reference. The new standard gives a new direction to the enterprises, which apply the stock intensive plans and need standard as the guidance not only in theory but in practice. Each standard should be mended according to the specific economic environment. Nevertheless, standard-setters neglected the differences between China and other well developed countries, which have already employed stock option plan for a long time, and even abused it. And also, there still have been a huge gap between CAS 11 and IFRS 2. CAS 11 is of simplicity and illegibility compared with other share-based payment standard, and has much to be improved. In the end, we may misunderstand the standard and even take advantage of the limitation in it. In that case, we should complement it immediately to avoid the ill-use of the standard and to make it a golden rule.The objective of this dissertation is to make the standard adapt to the status in quo and avoid reflecting the economic transaction arbitrarily, basing on the thorough analysis from theory to practice and also the experience of other countries. Whether the transaction should be recognized as expense and measured by fair value? From the writer's point of view, such question has been solved to some degree with the issuance of the share-based payment standard. Now, we should focus on how to apply the issued standard to the specific transaction. The situation of our country has its own characteristic. On the other hand, the stock intensive plans are also greatly of diversification, which lead to the transactions much more complex. As a result, making the share-based payment standard much more perfect is the most important thing in our economic lives.The innovation of this dissertation lies in the guidance of practice. That means it discusses how to make the standard much more practical as an instruction, as well as various accounting theories about share-based payment transaction. First of all, it studies the development of the share-based payment standard, including SFAS and IFRS. Then, it draws a conclusion that we should pay enormously attention to the economic influence of the accounting standard. The standard should be altered according to the economic environment, so that the standard may become popular with most of the enterprises. Secondly, it compares several share-based payment standards to find the demerits in CAS 11 and also some points which we can learn from the developed countries. Then, it studies some cases which are applied by some enterprises in the real world. It discusses a great many instances that may be met in real life, and analyzes them from many references to IFRS 2 in search of a better treatment for our country. It studies each main stock incentive mechanism from theory to practice in order to find a well designed plan which can realize the proper financial destination of an enterprise. It also makes guidance for the enterprises to choose the stock incentive mechanism. It hopes that this dissertation would be helpful for the application of the share-based payment transaction and make the stock intensive mechanism be applied far and wide.