The Analysis Of Share-based Payment Standard Application Status In China

Continue to accelerate the process of integration with the world economy, theprocess of globalization of the international capital markets as well as the rapiddevelopment of the knowledge-based economy, as well as China’s market economicreforms to further deepen, as well as the continuous improvement and development of thecapital market, which requires our corporate accounting specification of accountingregulations to keep pace with the needs of the capital market for accounting informationto improve the quality of accounting information as a precondition to meet therequirements of the relevant authorities such as investors, creditors, government, andcorporate management accounting information, standardizing accounting behavior andaccounting work order to safeguard the public interest for the purpose. So in February15,2006, the Ministry of Finance issued the new accounting standards system. The release ofthe39companies accounting standards, marking adapt to the requirements of thedevelopment of China’s market economy, the new enterprise accounting standardsconvergence with international practice, the system has been formally established, this isa new milestone in the history of the development of China ’s accounting. After all theyears of efforts, China has finally built up with China’s national conditions and adaptwhile full convergence with International Financial Reporting Standards, covers theeconomic and business enterprises of all types (except small businesses), independent ofthe implementation of accounting standards system. This includes the "AccountingStandards for Business Enterprises No.11-Share-based Payment. All along, theshare-based payment incentives is rather popular in developed countries, and universaldevelopment. Experienced a long phase of supporting the development of guidelines andresearch related share-based payment, the growing development of more matureannouncement, for example, the U.S. Financial Accounting Standards Board in December2004revised Financial Accounting Standards No.123Share-based payment”,the relevantprovisions of which are considered to be able to comprehensively regulate corporateaccounting treatment for share-based payment. Continuous internationalization in China’sdomestic market, Chinese enterprises from the perspective of enterprise development, butalso continue to try to equity incentive represented by the share-based payment plans.Share-based payment guidelines from release to far, has been implemented in the listedcompany for nearly seven years, in this period the specific circumstances of theguidelines in the practical application of enterprise worthy of study. In this paper, usingthe method of qualitative analysis, and case studies, analysis reports under theAccounting Division of the Ministry of Finance to publish annually the implementation of the Accounting Standards for Business Enterprises listed companies, and analysis ofthe major problems for China’s listed companies in the implementation of the share-basedpayment plan. First, according to the data in the report, the analysis of the overallsituation of China’s listed companies in the implementation of the share-based paymentplan, for the choice of the form of share-based payment, the disclosure of equityinstruments valuation model choice, share-based payment plans to modify or cancelvesting conditions set guidelines and disclosure defects questions. Second, analysis of thereasons for the formation of this situation, combined with the external environment ofChina’s market economy development status of the implementation of the guidelines onshare-based payment accounting standards related issues discussed, pointing out that ofshare-based payment accounting standards not yet perfect, and make recommendationsaccordingly improve as a criterion in order to contribute to a force.