Accounting Treatment Of Stock Options Discussed

Stock options's aim was to address the"principal-agent" problem,then it developed to an effective incentive and restraint mechanisms. Stock option incentiveed in the U.S in 1970s,it were recognized by the high-tech companies in 1980s and got rapid development in 1990s,at the same time stock option were widespreaded in Europe Japan and other countries.Due to its cost advantages and the effectiveness of incentive, stock option made important contribution to the production growth,stock market boom and technological innovation.The trend of China's state-owned enterprise reform is to establish a modern enterprise system which is characterized by the separation of ownership and management rights that resulted principal-agent problem.This problem has become the business development barriers. We induced the stock options in 1990s. The stock option accounting is the core content in stock option. Only a reasonable standard of the stock options accounting is to ensure the stock options get the healthy development and effective incentive.On February 15,2006, the Ministry of Finance People's Republic of China issued the accounting standards for enterprises No.11 share-based payment which specificated the accounting recognition, measurement and disclosure.And the guidelines reflects the convergence of international accounting standards. But the new standards only issued the guidance and the some specific areas need to be further improved and studied.This thesis is based on the SFAS123r, IFRS2r and our country conditions and attempt to analyze the shortcomings and make recommendations accordingly.This paper is divided into eight parts, the main topics of the first part is the background set to introduce the research method and research ideas, etc. The second part introduced the theory of accounting for stock options wihich help us to understand the stock option's economic substance.The third part of the stock options was accounting system of the international comparative analysis, focusing on analysis of U.S. Accounting Standards Board criteria for a landmark three:APB No.25, SFAS No.123 and SFAS No.123r, the International Accounting Standard Board's IFRS2, mainly introducing the core ideas and evaluation. The fourth part of the stock option was accounting recognition issue, summarizing the theoretical basis for accounting recognition, while the main analysis of the stock options identified two issues:the value of stock options and the identification of the time. PartⅤanalyzed the stock option accounting measurement problems including the basic theory of accounting measurement based on the conclusion,the stock option accounting measurement methods, stock option pricing model applications, accounting measurement date of stock options and stock options options amortization of costs and distribution problems. PartⅥanalyzed the stock option accounting information disclosure issue in the financial report (recognized and disclosed). PartⅦwas the introduction of new accounting standards in the country before the introduction of accounting treatment of stock options based on the focus from the accounting treatment, accounting measurement and accounting disclosure and tax collection and analysis of China's new accounting standards on stock option accounting problems. PartⅧwas raised for Part PartⅦand put forward a proposal accordingly, focusing on China's stock options and stock options accounting policy recommendations for improvement of tax collection methods.