Study On A Number Of Accounting Issues Of China's Equity Incentive

Currently, at the rapid progress of globalization, multinational corporations, the rapid development of cross-border trade, the world can not curb the trend of flattening, and accompanied by the rapid development of enterprises, or enterprises are one of the power at stake in one of the role of incentives same which can not be neglected. In the 70s, one of the equity-based incentives have led to emergence of the theoretical circle and the great interest in practical, rigid fixed remuneration has been unable to meet the needs of enterprise management, hard look at after a long time, they found that growth incentives ,the most important theory of human capital ,has an important factor at the lights and been felt discouraged Office - equity incentive born, like the dark night sky in a dazzling light of the lighthouse, it was so popular, major enterprises have to follow, as if education and training in human capital, encourage the growth of another inexhaustible power, another perpetual motion machine in existence, and often talk about equity-based incentives, huge amounts of wealth, income, huge salaries have cameras fall into the eye, but it is to be the materialism the same truth - things are always moving forward, but the process of development is tortuous.The last century 80's, the equity incentive defects began to appear, how to motivate? How the accounting treatment? Fair value is reasonable? Glorious feast has just begun I will bring punishment to denunciation pen only, while in China after the introduction of equity-based incentives are also faced with many problems, even in this sub-loan crisis, the investment bank's crazy dividends, and even the annual salary of 60,000 U.S. dollars on Wall Street also lead to people questioning the threshold. Nor does he need to mention Enron, WorldCom scandal in the heinous crimes of equity-based incentives, and equity-based incentives accounting property, the right conditions, a series of questions are more theoretical and practical address.The realization of China's current equity-based incentives system has been more than three years, but its perfect in the system, and related accounting norms still exist a number of shortcomings, especially in January 1, 2007 the new Accounting Standard for Business Enterprises, the accounting system gradually in line with international standards in respect of equity-based incentives also deal with the convergence of accounting and international, and its implementation of equity incentive system are also all sorts of imperfections gradually emerged, which from 2008 will be able to see the evident Yili Case. This paper analyzes the domestic and foreign equity incentive system to develop, and Yili case as a case of our equity incentive aspects of the accounting treatment of the perfect way to carry out were discussed.