Stock Option Accounting Recognition And Measurement

This article mainly discusses accounting for recognition and measurement of stock option and tries to find a proper accounting method for it according to our practical situation. In essence, stock option embodies the human capital owned by managers or executives, and belongs to the component of compensation to those managers and executives, so stock option should be recognized as an expense, measured at the fair value and included in the income statement. But at present, because of our lack of the condition of practicing the real stock option, accounting for stock option should be carried out like this: in short term, information concerning stock option should be disclosed specifically in accounting notes; in long term, stock option should be recognized as an expense and included in the income statement.