Discussion On Treatment Of Chinese Enterprises Equity-based Compensation Costs

From the 1990s, with the development of equity incentive system in China's A-share listed companies, the research on the executive stock options (ESO) followed on. The equity incentive system can display the positive role, only if the enterprise interior management as well as the exterior economic environment both went well. In the essence, it requests the accountant criterion coordinate with the law and regulation, such as the Company Law, to reflect economical items appropriately and completely.However, the correlation stipulation is exactly different in our country: the accountant criterion chose the expensing view, while the Company Law chose the distributing view.First, this paper analyses the development of ESO accounting at home and abroad, with concern of the respective socio-economic environment, and take legal system environment into consideration of the impact of confirmation particularly. Second, it pays full attention to the reason of the different treatment between the accountant criterion and the Company Law, by the accountant elementary theory and the modern drove theory as backing. Third, aiming at the conflict situation, it puts forward to revise the expensing treatment in view of the legal capital system, and builds a financial theory and method system. At last, it chooses Vanke Co., Ltd. as a case to illustrate the conclusion of this paper, in order to show the study's guiding significance for the practical contradiction.