| Convertible bond is a kind of middle-long-term hybrid financial product which has both the bond and the option features. Generally, it is a special bond which can be converted into stock, but actually it is a transmutation of stock option. Corporate Law, Stock regulations and interim management rules of convertible bonds in China have a detailed prescript to solve the problems regarding issuance of convertible bonds, while Accountancy as well as Law of Taxation also has a detailed prescript in Accounting. Intrinsic value and the characteristics of convertible bond provide a feasible environment for a"convertible bond incentive system".The first part of the thesis attempts to introduce the convertible bond to the company incentive system. Then based on the human capital, the principal-agent and the incentive theories, the option characteristics of the convertible bond have used to establish the convertible bond incentive system, and provide a new method for long-term incentive function.The last part of the thesis elaborates the accounting problem regarding the convertible bond incentive system in terms of recognition, measurement and disclosure of the accounting information.In accounting confirm, this paper emphasizes the convertible bond's convertibility, and regards that to provide useful decision-making information, the debt tool and the option tool should be recognized as the debt and the rights respectively. The economical essence of the convertible bond selling to the manager under low price is a reward paid which was given to manager for his service for company in the future,and it should be recognized as the enterprise's reward cost. In accounting measurement, this paper analyzes the characteristics of"relative fair method"and"with and without method", explains the rationality of"with and without method"under the present accounting system. Finally, the information which should be disclosed in and confirmed out the table both has been explained. |
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