The Study On The Accounting For The Share-based Payment

As an incentive method, share-based payment is becoming more and more popularly used by companies, and share-based payment now constitutes the main part of the rewarding for the top managers and the core technical staffs, especially in developed countries. By far, there are more than20,000enterprises carrying out the stock option ownership plan, and nearly30million staffs are involved in different kinds of ESOP(employee stock ownership plan) in the USA. Among the Global Fortune500of industry, more than400enterprises have carried out the stock option ownership plan. Share-based payment is becoming so popular, firstly, because this type of incentive resolves those principal-agent problems which were caused by the separation of the ownership and the management, and it also helps to cut the cost of entrustment. Secondly, nowadays the competition between enterprises are more like the competition between talents. As enterprises attach more importance to human capital, the owner of the human capital can enjoy the surplus value of the enterprise like the owner of the physical capital. Lastly, the ESOP is a good way to avoid the high tax caused by the high salary given to the top managers and core technical staffs. Share-based payment firstly oriented in America. In our country, share-based payment can trace back to staff share scheme, but until now the rules for the ESOP and its accounting are far from good. Many problems arise as the listed companies adopt the share-based payment accounting standards, which influence the accuracy of the accounting information greatly. Because the capital market is not mature and lack of the related rules and regulations, the companies in the process of IPO may not reflect the share-based payment in its financial statement at all, or just reflect a little part of the expenses, which undoubtedly will decrease the accuracy of its financial statements. In order to further standardize the share-based payment in IPO enterprises, Securities Supervisory Association Issue department published the Suggestions on the accounting for the IPO enterprises。This document demonstrates the scope of the share-based payment transaction, how to determine the price of the stock as well as the identification of the expenses arisen in the share-based payment.This article begins with the basic introduction of the share-based payment, including its origin theory, the equity instruments used in the share-based payment and its applying in our country. And it demonstrates the view points on the accounting of the share-based payment from home and abroad, then this article comes to the problems existed in the listed companies as they adopt the share-based payment accounting standard. This article also explains the particular details of the IPO enterprises as they carry out the share-based payment as well as its defects and difficulties. Then, this article uses a virtual case to explain the effects that the accounting of the share-based payment has on the financial condition of the listed companies. At last, this article gives some suggestions on the existed problems.