Research On Share-based Payment Accounting Treatment And Disclosure

Shared-based payment arose with the rapidly development of world-wide economy, and its importance has been known to all listed companies. It is also very important for both of the company’s long-term sustainable development and personal career. Chinese Shared-based payment principle is based on the reference of the United States and the international Shared-based payment, issued in 2006 and set the shared-based payment principle afoot in 2007. During this period several amendments has been made to the accounting standard for shared-based payment. Currently, as we noticed some important implementing issues of the share-based payment’s policy exist in domestic enterprises. The principle of the share-based payment has so many areas that are confusing or are not in line with principles in other standards or common business sense, such as, the treatment for cancellation of share-based payment, whether liability should be recognized for restricted stock issued to management personnel, how to determine the vesting period and how to recognize deferred tax arise from the difference between accounting treatment and tax treatment for share-based payment. Sometimes the economic effect after implementing share-based payment can not be reasonably expended by business enterprises. The related regulation requirement also needs to be further clarified. It’s difficult for the accounting profession to implement the requirements of share-based payment standard, and unreliable information will be misleading for users to understand the share-based payment transaction and its financial result.The paper starts from the discussion for theoretical basis of share-based payments, analyze issues in the implementation of share-based payment standard by Chinese listed companies. Based on that, Suggestions are provided for both the improvement of accounting standard of share-based payment and its disclosure. I hope share-based payment principle can be widely used in our country. The relevant government agencies should rethink some of the principles for the accounting treatment of share-based payment in response to the practical issues and make sure they can be fully understood by accounting profession and business enterprises..By solving the current issues into the market, the effect of share-based payment can be beneficial for both the business enterprises and their employees.