Research On Accounting Treatment Of Employee Stock Ownership Plan Of Listed Companies In China

Employee stock ownership plan(ESOP)has been carried out by more and more companies for promoting staff to take part in company development and enhance the corporate governance structure in recent years.Consequently,it has presented diversity by ownership form,resource of fund and issuing stock.However,the development of accounting standard and treatment for ESOP in China is relatively behindhand and it is difficult to guiding various ESOP in practice.Therefore,the purpose of this dissertation is to do a deep research on the current ESOP practical accounting treatment in China and give relevant suggestions on existing issues.Firstly,this dissertation would present introduction and comparison of current accounting treatment for ESOP under different accounting standard(share-based payment standard),which includes US Generally Accepted Accounting Principles(US GAAP),International Financial Reporting Standards(IFRS)and PRC generally Accepted Accounting Principles(PRC GAAP).It has been found that shortages exist between PRC GAAP and other accounting principles and it can be concluded that PRC GAAP only provide guidance on structure but lack of detailed accounting treatments.Secondly,this dissertation studies specific accounting treatments of ESOP under PRC GAAP and concludes three kinds of mainstream ESOP and corresponding treatments in China.According to the research,it has been found that imperfection of standards and supervision lead to the accounting treatment controversy,deficiency of accounting measurement method and incomplete disclosure of accounting plan for two of mainstream ESOPs.Therefore,the ESOP of Walvax Biotechnology Co.,Ltd.in 2015 has been used as the example to give a clear indication of potential issues for ESOP accounting treatment.Which uses a novel form and contains complex contents and meanwhile has brought a huge challenge for the current accounting standard Separate-entity Assumption in China.Finally,according to issues found in this dissertation,effective suggestions of standard setting and supervision improvement would be given,which aims to enhance relevant institution and principles and makes a contribution on the development of ESOP in China.