capitalization issue

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Bonus Issue

The free distribution of new shares to existing shareholders. A bonus issue is most common when the issuer does not wish to increase its dividend when it is expected to do so, especially when it may be cash poor. Instead of the increased dividend, shareholders receive the additional shares. Shareholders receive the bonus issue in proportion to the number of shares they already own. A bonus issue is also called a scrip issue. See also: Antidilution Provision.

capitalization issue

scrip issue

, the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS without any further payment being required. Capitalization issues are usually made when a company has ploughed back profits over several years and so has accumulated substantial RESERVES, or has revalued its fixed assets and accumulated capital reserves. If the company wishes to capitalize the reserves it can do so by creating extra shares to match the reserves, and issue them as BONUS SHARES to existing shareholders in proportion to their existing shareholdings. In the USA the term stock dividend is used to describe this same process. See also RETAINED PROFIT.

capitalization issue

scrip issue

the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS without any further payment being required. Capitalization issues are usually made where a company has ploughed back profits over several years, so accumulating substantial RESERVES, or has revalued its fixed assets and accumulated capital reserves. If the company wishes to capitalize the reserves, it can do so by creating extra shares to match the reserves and issue them as BONUS SHARES to existing shareholders in proportion to their existing shareholdings. See also RETAINED PROFIT.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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275, 283-84 (1967) (rejecting the contention that section 263 is dispositive on capitalization issues and indicating that the principles of capitalization and clear reflection of income are "inextricably intertwined").

Everything old is new again: reaching the limits of INDOPCO's future benefits with the just-in-time management philosophy

As much as we would all like to believe that this regulation will put an end to controversy in this area, our collective experiences in dealing with capitalization issues suggests this may be overly optimistic.

The final INDOPCO regulations: a primer

Capitalization Issues. TEI referred to the recent advance notice of proposed rulemaking concerning capitalization issues.

Tax Executives Institute--U.S. Department of Treasury liaison meeting: February 6, 2002

The most contentious capitalization issues are those where revenue agents propose adjustments for intangible "significant future benefits" that have no readily ascertainable life and for which the current rules permit no amortization deduction.

Comments on ANPR on capitalization: April 24, 2002

Today, we are busy analyzing a new set of R&D credit rules that, while far from perfect, are more reasonable and grounded in reality, and we are studying a framework for comprehensive guidance on capitalization issues that hold the promise of moderating the drain those issues have been on both IRS and taxpayer resources.

New realities of 2002

Therefore, a feasibility analysis should also consider certain ownership and capitalization issues.

Feasibility studies help avoid ESOP foibles

The Institute also commended the Treasury Department for the recent advanced notice of proposed rulemaking on capitalization issues. TEI has consistently encouraged the issuance of bright-line rules that will quell the frequent disputes and needless controversies that have arisen since the INDOPCO decision, the organization stated.

Winter activities confirm institute's expertise as TEI slaloms way to center platform with golden liaison meetings, amicus brief. (TEI's Own Olympic Fever)

The Notice acknowledges that the scope of controversies over capitalization issues has increased in the wake of the decision in INDOPCO v.

Tax Executives Institute--Internal Revenue Service Large and Mid-Size Business Division liaison meeting; February 5, 2002

He noted that the department is also working on ways providing bright-line guidance on capitalization issues.

TEI carries on; 56th Annual Conference opens in Boston. (Recent Activities)

According to the document, the proposal attempts to "set forth an administrable and practical framework for addressing capitalization issues by providing objective principles that draw lines between capital expenditures and deductible expenses."

Economic stimulus, capitalization, IFTA, and Canadian activities take center stage. (Recent Activities)

Large capitalization issues succumbed to selling, weighing on stock indexes, but small-cap shares were picked up.

LEAD: Nikkei snaps 8-day rally on U.S. shares' fall, soft output data

Skillman, urging the government to follow through on the Priority Guidance Plan and issue much-needed guidance on capitalization issues. The letter was prepared under the aegis of TEI's Federal Tax Committee, whose chair is Mitchell S.