Bonus Method

Bonus Method

In accounting, a method to calculate the capital that each partner in a partnership contributes. According to the bonus method, partners who contribute intangible assets (such as sweat equity or expertise) are providing more capital to the company than they actually did in cash.
References in periodicals archive ?
For participating contracts, the different profit distribution methods are also discussed, such as the contribution method, the uniform reversionary bonus method, revalorization methods, and the accumulating with profits method.
Before reviewing alternative bonus methods, however, it is important to define some terminology.
To examine municipal choice further, we use probit analysis to identify the determinants of a community's decision to use the Regional Contribution Agreement and density bonus methods.