Stock Option

SL888

Stock opton該點入數?

intermezzo

Inventory is very different from Stock Option bor!

SL888

intermezzo 發表於 2011-1-29 11:24
Inventory is very different from Stock Option bor!

C-hing, what do you Dr. and Cr. first???

intermezzo

Z370 發表於 2011-1-28 19:21
Stock opton該點入數?

Is this meant to be a joke?  I don't get it.

SL888

intermezzo 發表於 2011-1-29 11:29
Is this meant to be a joke?  I don't get it.

師兄，禾認真喎。

intermezzo

inventory = 庫存
stock option = 股票期權

They are unrelated ar.

SL888

intermezzo 發表於 2011-1-29 12:06
inventory = 庫存
stock option = 股票期權

梗係唔係啦，禾講個stock option 係inventory 喎，不是金融股票期權put call 哈哈。

intermezzo

Your terminology is unusual:
http://www.ventureline.com/accou ... -option-definition/
http://www.tuition.com.hk/dictionary/s.htm
http://www.bizterms.net/term/Stock-option.html
http://financial-dictionary.thefreedictionary.com/Stock+Option

SL888

Regarding to your referencing links, they are all the definition of stock option.

In general, stock option is applied to the accounting knowledge, how do you record as the journal entries?

intermezzo

Those links show that stock option is unrelated to inventory ar.

I think you need to be more specific.  If you want to know about inventory, there are two systems: periodic and perpetual.  They are very different.  Also what activity are we talking about: purchasing inventory?  Selling inventory?

Stock option is often part of the employee compensation package.  You also need to specify the transaction: to record it as a salary expense?  Or when the employee redeems it, etc

Or do you actually have "treasury stock" in mind?  Again, what kind of transaction?

SL888

Two situations: -

1) grant option
2) value the option vair value

intermezzo

See page 44 onwards for stock option: http://www.wiley.com/college/kieso/0470161000/ppt/ch16.ppt

SL888

C-hing, what are you working???

長江7號

Z370 發表於 2011-1-29 13:24
Two situations: -

1) grant option

要先搵 valuer  計左個

option value 先

長江7號

跟住個 option value 就要跟個

vesting period 去攤

假設 valuer 計左個 option value 係 $120,000

vesting period 係一年

每個月既 adjustment 如下：

Dr. Employee share option benefits   10,000
Cr. Employee share option compensation reserve  10,000

做足12個月就5洗做

直到有人 exercise 或 cancel option 為止

Exercise 就沖去 premium

cancel 就沖去 retained earnings

assusys

有公司當STOCK OPTION 係contingent asset/liability, 只係係BS REFERENCE列出.

長江7號

assusys 發表於 2011-2-17 20:08
有公司當STOCK OPTION 係contingent asset/liability, 只係係BS REFERENCE列出.

禾對呢個 accounting standard 5係好熟

詳情可參考

http://app1.hkicpa.org.hk/hksaeb ... volumeII/hkfrs2.pdf

我之前舉既例子係一般公司派 share option 比員工既 accounting treatment

但如果當 contingent assets

應該係公司反而收到其他公司比佢既 option, 咪無可能會變做 assets

contingent liabilities 都幾奇怪

因 share option granted to employees 絕對5係公司既洗費

而係一個 equity based compensation

所以應該郁 reserve (equity), 而5係 contingent liabilities

或者你所講果個入賬方法

係向呢條 frs 出之前所用既方法

s991223

gd..............

vincent50330224

Stock option shall be according to the HKFRS2, under the HKFRS2, we shall classify the stock option with equity base and cash settle base , ( How to classify please refer to HKFRS2 ) , if it is equity base , it shall not be an expense , we need to divide  the fair value to option at grant date to the period to mature .

If it is cash settlement we shall be book at fair value of the option at each year end period until it is mature .

In most case , the stock option can be equity base , however, if the stock option is qranted by the holding company to the subsidy and the obligation is on the subsidy instead of the holding it is cash settled .