Stock Option Theory And The Accounting Treatment Study

One of the most important factors that influence and decide socialist economic development is human resources. It depends on constant innovations of enterprises1 vitality to develop national economy and increase wealth. Entrepreneurs and key talented persons are the engines of business innovation and leaders of development of productive forces. The key to establish strong enterprises full of competition is to cultivate a lot of excellent entrepreneurs and professional and key talented persons. However, our enterprises haven't resolve incentive mechanism efficiently. In western countries stock option has recently been one of the most efficient long-term incentive methods adopted by enterprises. Not only can it bring high vitality to business, but also it can push the development of economy.This thesis begins from stock option's general recognition, expounding stock option's conception, main types and theory basis and analyzing operating effect from positive aspect. Because there are a few disadvantages in Chinese stock market, business system, etc., the thesis rises up some advice on how to overcome these limited factors. Then from accounting angle, the thesis puts forward the question that there are no principles by which stock option abides in accounting field. After researching stock option's accounting models in America and comparing some different opinions on stock option's accounting in China, the thesis demonstrates stock option accounting system in conception that files for Chinese character in details.