Manager Of The Sino-us Listed Companies Stock Option Accounting Research

Executive Stock Option (ESO), the most effective stimulating system, has connection as well as differentiation with Option and Stock Option (SO) of finance. ESO is set up on the basis of three theories.ESO was first set out in America and gained success there. It proved that the success of pursuing the system has relation to economic environment. The deficiency of stimulation and constrain to administrators has severely restricted the development of our state-owned business enterprises. In recent years, a number of public companies attended to carry out ESO stimulating institution, and some problems stood out during operational process, in which the most stubborn one was how to deal with accounting treatment canonically.To the viewpoint of accounting confirmation of ESO, America hold "charge viewpoint" while our country support "special equity viewpoint", "profit distribution viewpoint" and "non-accounting object viewpoint." Depending on the economic essence and speciality, the standpoint of "contingent stockholder's equity" may be the best affirmance of ESO. Furthermore, to the accounting meterage of ESO, America implement "Just and Sound Method" which measures the value of SO according to B-S model while our country has two opinions, one is "Intrinsic Value Method" and the other is "Just and Sound Method." In fact, postulated conditions of B-S model hugely restrict its applicability. What's more, our country's capital market has low efficiency and failed to execute "Just and Sound" in the past, all this proved that our nation should pursuing modificatory "Intrinsic Value Method" by charging off contributing factors of capital market, nation policy and special business lines instead of "Just and Sound Method." To accounting disclosure of ESO, American own unified accounting standards but our scholar put forward the opinions of disclosure duty and quality. In conclusion, we should carry on cost - efficiency analysis according to the importance of pursuing the system in one whole enterprise, and the other side of shield, table out disclosure could refer to the rules of contingent matter in line on "contingent stockholder's equity.