Study Of The Implementation Of Its Accounting Treatment Of Stock Option Plans

Due to the separation of ownership and operation right in the modern corporation management system, the executive stock option (ESO)was created. It can stimulate high rank manager of enterprises to serve for realization of the goal expected by the owner. The theory of ESO has been developed fully in the developed country, such as U.S.A and England. And it has been widely applied in these countries, and has created good effect. But the application of ESO in our country is still in the period of beginning.The article is divided into five chapters, the author introduced the concept, the use and the situation of the ESO firstly. Then, she analyzed the theory about the stimulation effect of the ESO. Thirdly, the author deeply researched the design of execution plan and the accounting handling of the ESO. Finally, she gave some suggestions to deal with the limitation of the ESO.