Stock Option Accounting Standards Research

The stock option originated in the USA in the 1950s, because it can motivate employees and make their target the same with the shareholders',and also tend to solve "principal-agent" problems in the enterprises effectively, has been widely spread in many countries of the world. Especially for those enterprises with less funds like high-tech companies, as an effective means, the stock option can not only reduce the companies'outflow of cash, but also can keep talents for them. In the late 1990s, China started to introduce the stock option, many companies (such as China Vanke, Erie shares, etc.) are also actively pursued the practice. At present, the stock option has been more and more widely used in Chinese enterprises.In order to adapt to the development of the stock option,China's Ministry of Finance on February 15,2006 issued the "Accounting Standards for Enterprises No.11-Share Based Payment".The issued of the guidelines ended the situation, that the stock option business has long been the lack of uniform accounting standards standard, finally the recognition, measurement and disclosure provisions of the stoke option are made accordingly, and regulate the accounting treatment of the stock option. This standard provides a theoretical and practical guidance for the stock option in Chinese enterprises, and at last offers a guarantee for further development.However, as the development of the stock option in china, the guidelines in practice should be with the development of the necessary complement. This paper stands on the results of these previous studies, through comparing the domestic standards with the international stock option accounting standards, focused on analysis of the stock option's accounting issues (including accounting recognition, accounting measurement, disclosure of accounting information), and finally draws the following conclusions:In accounting recognition,,this paper suggests the recognition of stock options costs of treatment should adhere to the principle of the proposed guidelines and make a much more in the cost of amortization of specific requirements;in accounting measurement, the basis of fair value measurement has become an inevitable trend, but whether this method should be used in all enterprises in our country remains to be considered,at the same time the choice of the measurement model should be further clarified; in accounting disclosure, the paper suggests to follow the international practice, so the enterprises are required to disclose the accounting information and non-accounting information of the stock option to make detailed disclosures. Finally, this paper suggests to from a more perfect capital market, strengthen both the internal and external supervision of the enterprises, in order to better implement the Stock Option Accounting Standards.