Research On The Related Accounting Problem Of Share-based Payment

For more than half a century, the share-based payment as an incentive mechanism was very popular in developed countries, and gradually introduced in China in the early 1990 s. Since 2005,the shareholder structure reform, the provisions of the company law and the securities law, a series of policies issued by CSRC and the performance of accounting standards for enterprises no. 11-share-based payment,these all provided a well legal and policy environment for the stock incentive of listed companies in China. However, we still need to realize that the more extensive share-based payment used, the better standard needed. In this paper, writer research on the related accounting problem of share-based payment by normative research primarily and also the case analysis, hope it is helpful in the implementation of share-based payment in our country.The paper includes the following four parts.The first part is "introduction", which expounds the background and significance of this paper, and gives a general overview of the research situation about related topics at home and abroad. The foreign research situation is most about the study of FASB revised SFAS 123.The introduction of domestic research is relatively widely, including the theory research, the empirical study and research on the accounting standards. In the end of this part, the author summarizes the main the research contents and methods of this paper, and points out the contribution and inadequate.The second part is about the basic theory of share-based payment, first expounds the conception of share-based payment, this paper defines it as "a deal or system arrangement that the enterprise awards equity tools to the staff or undertakes liabilities based on equity tools, in order to obtain the service that the staff provided". Second, the classification of share-based payment, divided into cash settled share-based payment, equity settled share-based payment and with cash option share-based payment according to the settlement form; Divided into stock options, restricted stock, stock appreciation rights and virtual stock according to the types of equity. Then make an introduction of the equity incentive implementation in China. Finally, point out the accounting problems of share-based. After introducing the controversial problems on recognition, measurement and disclosure of share-based payment, the author points out the focus of this paper.The third part is the current situation of listed companies share-based payment implementation in China. First the author makes a statistical analysis of the situation that listed companies practice equity incentive in 2006～2010, and in this process, noticing the inappropriate of accounting treatment. To analysis these problems by particular cases, specifically, the inappropriate allocation of the stock incentive cost during waiting period, such as Hainan Haiyao, DEREN; The problem about "authorize one-time but excise several times", such as NMYILI, KingFa; The measurement problem of fair value; The problems about accounting treatment of equity settled share-based payment, ZOJE for example; and the termination of stock incentive plan, such as Dr.Peng Technology, CONBA.The fourth part makes suggestions according to the problems mentioned in the third part, to improve "share-based payment standard". The suggestions include:Clearly define the grant date as the day that stock incentive plan is approved by the general meeting of shareholders meeting; Make a definitely allocation method of the stock incentive cost; Add regulations about "authorize one-time but excise several times"; Require the measurement of fair value in details; Revaluate the fair value of equity settled share-based payment; Make the treatment of approve and cancel stock incentive plan in the same year clearly. In addition, two suggestions unrelated to accounting standard:Restrict the time interval between a stock incentive plan comes out to approved; Encourage the application of cash settled share-based payment.The main contribution of this paper includes, making a status analysis of the implementation of Chinese listed companies, and a data collection of disclosed stock incentive plan since 2006. In addition, give advices on improving the standard of share-based payment and other relevant regulations by case analysis of the accounting treatment in share-based payment.Of course, this paper still has lots of deficiencies, the practice of stock incentive is more complicated than the standard, and because of the author's limited theoretical knowledge, the analysis of the problems and suggestions appears unavoidably flawed, which needs a further improved is in the future work and study.