| Along with the emendation and promulgation of Company Law of the People's Republic of China, and Securities Law of the People's Republic of China, Equity Incentive has developed quickly in China since it was introduced in 1990's, especially after the Equity Division Reform. For the purpose of regulating the accounting treatment of equity incentive, Ministry of Finance promulgated Accounting Standards for Enterprises No. 11-Share-based Payments (ASE-11) at Feb. 15, 2006. But ASE-11 is too principle to exercise, and there is great difference between the former and IFRS. So the accounting treatment of equity incentive has been a difficult problem.This paper analyzes and compares ASE-11 with IFRS and GAAP, using the data of XDF Education Group, a company listed abroad, makes suggestion on the accounting treatment and the development of equity incentive in China.The paper has 5 chapters:First makes out the background and the signification of equity incentive plan, outlines the problems and literatures of equity incentive accounting treatment.Second illustrate the theory basis and the types of equity incentive.Third compares ASE-11 with IFRS and GAAP, points the defaults of ASE-11.Forth introduces XED Group equity incentive plan, illustrates the accounting measurement, the acquisition of fair value recognition data, the effect of equity incentive expenditure on EPS and taxes, based on the data of XED Group equity incentive plan 2007, and 2008.Fifth makes conclusion, highlights the main points and the shortage of the paper.The main purpose of the paper is to make positive suggestion on the amelioration ofASE-11. |
