Research On Accounting Issues Of Terminating Restricted Stock Incentive Plan In My Country

More and more companies have launched incentive plans of restrictive stock.In order to achieve the conditions in the incentive plans,more and more companies will strive to improve their performance.China's accounting treatment for the termination of equity incentive plans mainly draws on international accounting standards,but China's standard is relatively strict.Therefore,this paper puts forward such a question: is there really no problem for China's current strict termination of incentive plans for the restrictive stock? Why is there such a high termination rate?This paper analyzes the background of the accounting problem of equity incentives termination firstly,expounds the theoretical and practical significance of the study,and then compares and summarizes the relevant domestic and foreign research.At the same time,the statistical analysis of the status of equity incentives shows the necessity of analyzing the restricted stock incentive plan.On this basis,taking the example of HKUST as an example,the content,termination,and accounting treatment of the incentive plan were introduced.In the case analysis section,the horizontal and vertical analysis was used to illustrate the effect of the termination of incentive plan on the impact of accelerated viable rights on net profits.In order to meet non-market conditions and not meet non-market conditions,an analysis was made of HKUST's choice of active termination and natural failure's different accounting treatment and effect,and explores the reasons for companies to actively terminate the incentive plan of restricted stock.Through the case study,we discussed the issue of determining the grant date,and found that China's current termination of the equity incentive plan may have problems.The paper argues that in order to improve accounting standards of the incentive plan's termination and improve the quality of accounting information,it is recommended that the new incentive plan be allowed to immediately replace the original incentive plan,and the cost of accelerating the termination of the incentive plan should be listed as an abnormal project,which clearly defines the details of the grant date and so on.Although the last proposal in the article is targeted at restricted stocks,these also can apply to other equity-settled share-based payments.