Research On Accounting Issues In Equity-settled Share-based Payment

As a means of long-term incentive,share-based payment has become increasingly popular in Chinese companies in recent years.By implementing the incentive plan with share-based payment,companies can mobilize the enthusiasm of managers or employees so as to create greater value.Statistics show that from 2010 to 2017,China's listed companies issued a total of 2485 incentive plans,of which 2472 were incentive plans for equity-settled share-based payments.So,equity-settled share-based payments have become the main types of share-based payments that are applied in practice.However,due to the short application time of the share-based payment system in practice,the accounting supervision report of the listed company's annual reports issued by the CSRC for two consecutive years has mentioned that the accounting treatment of equity-settled share-based payments in the practice was not standardized.Considering that more companies will publish and implement related incentive plans in the future,incorrect accounting will not only affect the implementation of the share payment in our country,but also lead to large differences in the financial data and affect the decision results of the financial reporting users.This paper will make a specific analysis on the issues in accounting of equity-settled share-based payment in practice,and provide some improvement suggestions for the enterprise to carry out the incentive plan and the correct accounting treatment.This paper adopts statistical description method and standards research method to study the issues in accounting of listed companies applying equity-settled share-based payment in practice.First of all,the paper makes statistics on China's listed companies applying equity settlement share payment,and finds that the listed companies mainly use the three ways of stock option,restrictive stock and ESOP.Then,the paper selects 50 samples of listed companies from these three ways,makes a systematic analysis of their accounting process,and finds that the main issues in the current practice are the following aspects: the listed companies do not have correct accounting treatment for the termination plan,the accounting recognition of restrictive stock is inconsistent,the accounting recognition of ESOP is not correct,accounting measurement methods are diverse and important parameters are not comparable,the information disclosure content of the incentive plan is incomplete,etc..After comparing the relevant accounting standards in the United States,this paper holds that the more mature foreign stock payment system has a certain reference to the improvement of accounting treatment in our country.Therefore,this paper studies and improves the accounting of equity-settled share-based payment based on the mature experience of the United States.Finally,the paper puts forward policy recommendations from the following three aspects: government departments should improve standards and related systems,enterprises need to strengthen management and internal control,and related external entities should conduct supervision and guidance.