Executive Stock Options And Financial Accounting Issues

ESO is originated from USA. It can solve entrust-agency problem caused by dissymmetry of each other information. It is necessary for us to ues ESO. ESOis a new thing , and the study of ESO is in first step in China. The article studies the affect of ESO to financial status and accounting of a company.In this paper, first of all define the concept of executive stock options and their characteristics on the basis of massive literature. Then incentive mechanism is analyzed, followed by the manager of the accounting treatment of stock options approach (accounting recognition and measurement methods) summarized the changes summing up. Secondly, this article through the use of modern enterprise theory of executive stock options for a theoretical analysis, come to the manager of the economic substance of stock options and its implication to discuss the economic substance of the accounting recognition and measurement issues. At the same time, the United States article on the development process of the stock options had a summary of stock options on the implementation of the United States exposed by an analysis of financial issues, summarized and analyzed the experiences and lessons worth learning. Finally, introduce the executive stock options in recent years in the development of the domestic status quo, then our country is currently implemented by the existence of incentive stock options of the main issues of financial and accounting analysis, summarized the specific reasons for the existence of obstacles, and put forward corresponding countermeasures advice.