China Company To Implement The Executive Stock Option Accounting Issues

ESO is originated from USA. It can solve entrust-agency problem caused by dissymmetry of each other' information. It is necessary for us to use ESO. ESO is a new thing , and the study of ESO is in first step in China. The article studies the affect of ESO to financial status and accounting of a company.The article is made up of four parts. The first part introduces ESO simply, including the definition, characters and varieties of ESO; the origination and the role of the article; theoretical base of ESO and . The second part of the article is concerned with the effect of ESO in finance. The main topics of this part are where to get the stock in ESO plan? how the price of ESO is decided? What effect does ESO have on earnings per share ? In the third part the article studies ESO in accounting attitude .The main topics include recognition, measurement and exposure of ESO in financial statements in China. The forth part of the article analyzes the current situation of ESO in China and brings some new advice.The article studies from the characters of ESO. It analyzes the financial effect of ESO and how to recognize, measure and exposure ESO. The article is useful for the pratice of ESO.