Research On The Accounting Treatment Of Equity Incentives

In 2006, the Ministry of Finance issued Accounting Standards No. Ⅺ-Share based payment. This not only regulates the accounting treatment of equity incentive transactions, but also contributed to the development of incentive stock options. However, there are still some gaps between China’s accounting standards and international accounting standards.First of all, I have conducted a preliminary theoretical analysis on accounting standards of our country, through comparison of our share-based payment accounting standards and foreign share-based payment accounting standards. Then, I analyze Alibaba’s equity incentive accounting treatment and summarize the characteristics of Hong Kong stock payment accounting standards. I also analyze UF software accounting treatment of equity incentive and summarize the defects of our share-based payment accounting standards. Lastly, I summed up the lack our relevant accounting standards from the two cases and propose improvements of our share-based payment accounting standards.