The term capital is synonymous to unimpaired capital and surplus, combined capital accounts and net worth and refers to the total of the unimpaired paid-in capital, surplus, and undivided profits
. Under the new circular, Fonacier said deposits for stock subscription classified as equity would now be part of banks' net worth.
Firstly, increasing R&D cost pushed up operation fee over 20% in Q2; secondly, exchange loss from Czech koruna (CZK) and China's Renminbi (RMB) reached NT$450 million (US$15 million) to total NT$575 million (US$19.17 million); finally mounting income tax from undivided profits
weakened growth of economy of scale.
In that situation, the language of the Bill states that "the creditor corporation is allowed to deduct from the total of its capital, surplus, and undivided profits the amount of any debt owed to it by a parent, subsidiary, or affiliated corporation to the extent that the debt has been included in the tax base of the parent, subsidiary, or affiliated debtor corporation reporting for taxation under the provision to this section." No such relief provision exists, however, to remedy the potential for double taxation created by applying the related party debt rule to noncorporate business entities.
Under current law, corporations calculate their apportioned tax base (i.e., prior to applying the tax rate) by using the highest of three amounts: (1) total capital stock, surplus and undivided profits apportioned to North Carolina; (2) 55% of the appraised value of all real and tangible personal property in the State; and (3) the total actual investment in tangible property in the State.
Aki's recent Senate Bill 1756 would order newspapers to submit a form revealing their assets and liabilities, all sustained losses, expenses and taxes paid (including all compensation paid to each officer, editor and publisher), gross earnings, undivided profits
and dividends paid.
For example, a Delaware bank may not count its bank capital and surplus as part of the mandated capital and reserves for its insurance operations, nor may it allocate more than 25 percent of its total capital, surplus and undivided profits
in the aggregate to all of its insurance divisions and subsidiaries.
The authors of  cite the ratio of undivided profit to owned capital as an indicator of life cycle phase.
According to the pecking order theory, this is because management prioritized undivided profit over issuing shares or bonds during financing because of high flotation costs.