The Accounting Principles of Stock Option in U.S. and its Inspiration
LI Yao (The Securities & Futures Institute of Shanghai University of Finance and Economics, Shanghai, China, 200433)
The paper investigates two problems i.e.when to keep accounts and how to keep accounts for stock options. It presents SEC's and FASB's viewpoints and policies, and illustrates the FASB No.123 detailed rules. The author's conclustions are: 1.the stock option plans for domestic companies should not be kept into accounts at grant date, but at vest date. For companies going to be listed overseas, it is different; 2.the unlisted companies should evaluate their companies'value before issuing stock options in order to make option exercise prices and avoid huge compensation costs; 3.it should be avoided to grant employees options at low prices; 4.the fix stock options are preferable from the accounting point.
【CateGory Index】： F837.12