The Research On Accounting Information Disclosure For Executive Stock Option

In January 2006, China Securities Regulatory Commission issued " "Provisional Measures on the Equity Incentive in Chinese Listed Company", to promote the pilot of equity-based incentive; at the same time, Ministry of Finance People's Republic of China also launched " Accounting Standard for Business Enterprises No. 11 - Share-based Payment" and " Application Guide" in February 2006, to provide a fundamental basis for the accounting treatment of equity-based incentive. With the development of relevant system and implement environment, executive stock option is used in more and more Chinese enterprises, which gives a profound impact on companies' financial performance and operating condition; as a result, it makes the disclosure of executive stock option's accounting information particularly important.Taking modern accounting theory, stock option theory and accounting information disclosure theory as theory guides, combined with the current research of executive stock option accounting theory, this paper conducts a comprehensive and detailed discussion with the executive stock option accounting information disclosure, to seek the best mode of the executive stock option accounting information disclosure, by using normative research method and quantitative analysis method, for improving the status quo of the accounting information disclose of executive stock option and the system of executive stock option accounting information disclosure in China.This paper takes 15 listed companies which implement executive stock option as study objects, analyses their status of executive stock option accounting information disclosure from the interim report to the periodic report, from the sheet disclosure to off-sheet disclosure, from disclosure contents to disclosure forms, points out the deficiencies of current accounting disclosure information of executive stock option in China, and proposes relevant measures from two aspects which are disclosure content and disclosure mode, to improve executive stock option accounting information disclosure.Finally, this paper comes to the following conclusions: firstly, the research of accounting information disclosure should basis on modern accounting theory, stock option theory and accounting information disclosure theory, and executive stock option accounting recognition and measurement is the primary problem to solve; secondly, in the accounting measurement of executive stock option, the companies should select appropriate option pricing model in combination with the actual situation, and disclose detail information about the method to determine model parameters; thirdly, there should be more off-sheet disclosure contents, including the disclosures about the important elements of executive stock option, the option cost sharing methods and their impacts on operating results and financial performances; fourthly, the off-sheet disclosure mode should be unified, by using descriptive, analytical disclosure tables and other forms, to give full disclosure of executive stock option accounting information.