Research On Accounting Treatment Of Share-based Payment Of Listed Companies

With the gradual improvement of the equity incentive system and the continuous improvement of corporate governance structure,share-based payment has become one of the important means for enterprises to motivate talents,especially in high-tech enterprises and start-up enterprises.Share-based payment,as a trading method for corporate shareholders to exchange stock options for employee or third-party services,generally comes with corresponding exercise conditions,which can help companies attract and retain talent,form a community of interests for executives,shareholders,and employees,and enhance the overall cohesion and competitiveness of the enterprise.As a relatively high-quality enterprise,listed companies often involve the issue of share-based payments when implementing equity incentives.However,in practical implementation,due to incomplete research on accounting standards for enterprises,some companies may encounter problems such as inadequate understanding of the standards and inconsistent treatment of share-based payments,which affects the reliability of accounting information and market stability.At present,there is a lot of research on issues related to share-based payments in the academic community,but research on the uniqueness of individual cases still needs to be enriched.This article takes Ganzhou Tengyuan Cobalt Industry New Materials Co.,Ltd.as the research object,using three research methods: literature research method,case study method,and comparative study method.Based on the relevant documents of Enterprise Accounting Standard No.11-Share-based Payments,it focuses on the existing problems in the accounting treatment of share-based payments,and focuses on analyzing the definition of the company’s share-based payment scope,determination of the fair value of share-based payments From four aspects: the selection of amortization methods for share-based payments and the disclosure of information related to share-based payments,this paper summarizes the characteristics of the company’s accounting treatment for share-based payments,and uses this as a reference to compare various problems that may arise in China’s planned IPO enterprises in share-based payments,providing suggestions for the government and enterprises to optimize and improve related work.Through case analysis,the following results can be obtained from this study: firstly,the current accounting standards have a relatively simple and vague definition of the scope of share-based payments,without specific provisions for different situations that occur in practical operations.The scope of share-based payments can be further divided into two situations:capital increase and equity conversion at low prices.Secondly,it is reasonable for Tengyuan Cobalt Industry to use the recent PE investor purchase price as its fair value,but the criteria do not clearly specify the method for selecting fair value.This may lead to some companies freely choosing fair value determination methods in order to improve profits.Thirdly,Tengyuan Cobalt Industry has adopted two methods of amortization of share-based payment expenses,among which there is no service period set for the equity incentives for executives,which is suspected of increasing the company’s profits before going public.Fourthly,Tengyuan Cobalt Industry has not disclosed in detail the specific personnel involved in its share-based payment information disclosure and the impact of different amortization methods on the company’s financial statements,which may affect investors’ judgment of the company.This article conducts in-depth research on the accounting treatment issues of Ganzhou Tengyuan Cobalt Industry New Materials Co.,Ltd.in stock payment,with the aim of identifying relevant issues and deficiencies through specific situation analysis,and providing targeted guidance and suggestions for the implementation of stock payment related work of the proposed IPO company.