Research On Executive Stock Option Accounting

In the modern corporates governance, Executive stock option(ESO) is considered to be one of the most effective incentives for solving the principal-agent problem. By allowing operators to share in the company's residual income, ESO coordinated the contradiction between the owners and operators. To bind by setting goals for the future and comings may harvest the potential benefits, ESO thus ultimately will get the the respective interests of the owners and operators and the realization of enterprise value, or to achieve the goal of maximizing shareholder wealth.In 1999, "The decision about some importmant issues of state-owned enterprises(SOEs) reform and development" affirmed the distribution method of trying to practice "stock option plan", after that, many enterprises, especially listed companies, have developed stock option incentive mechanism and put them to practice actively. However, as a result of the national stock option system lies in preliminary and trying out phases, there is no in-depth research on accounting of ESO. Nowadays, the number of enterprises that adopted ESO system is limited and is not criterion in our country, the method of accounting for ESO is varied, the methord of different experimental entities are various. In this case, normative accounting questions of China's Executive Stock Option must be resolved.Begins with the processes of recognizing, measuring and disclosing, Expect to build out the methodology of the ESO accounting. Meanwhile, sort, summarize Executive Stock Option Accounting research of the West especially the United States, drawing the essence of the theory. Grasp the development trend of the criteria for our own use. On this basis, explore and sum up China's current stock option under the system manager status and lack of accounting for our managers to improve the stock option accounting system and provide a theoretical basis and countermeasures.First, this study aims to:(1)Analysis the substance of ESO and accounting treatment;(2)Give the the specific accounting treatment under the concept of profits, make recommendations to recognition, measurement, recording and disclosuring.This paper is divided into three parts:The first chapter is the introduction, belongs to the first part. The second part consists of a second, three chapters, this section mainly discusses the domestic managers to learn from the accounting treatment of ESO, the theoretical background and practical situations. The last three chapters belong to the third part, Mainly researched in ESO accounting in the accounting recogniting, measuring and disclosuring angles separately. Finally, in reference to foreign relevant experience and accounting standards, refer to China's specific conditions and realities and to make the author's practical recommendations. The chapters are as follows:Chapter I:an overview of issues arise, and topics of the significance of this detail to introduce the idea of this research and the main contribution to the analysis of the full text of lay research base.ChapterⅡ:Introduction of foreign domestic background and the status quo of ESO. ChapterⅢ:the theory and analysis of economic substance of ESO. ChapterⅣ-Ⅵ:Research on ESO Accounting Property-Accounting recognition, Accounting measurement and Accounting disclose.The main contribution of this paper is:(1)find out the economic substance of ESO; (2) Proposed the the specific accounting treatment under the concept of profits, make recommendations to recognition, measurement, recording and disclosuring.