capitalization issue

Also found in: Dictionary, Thesaurus, Legal, Wikipedia.

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.

Mentioned in ?

References in periodicals archive ?

95-19 indicates that an interest capitalization issue is under consideration if the taxpayer has received written notification, including an information document request, identifying a method or submethod as under consideration.

Filing of Form 3115 may be necessary by June 19, 1995 to obtain automatic approval (including audit relief) for changes to comply with final interest capitalization regulations

11p per share adjusted for the capitalization issue in July 1994).

VODAFONE GROUP PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED MARCH 31, 1995

Vodafone AirTouch Plc (the "Company") (NYSE: VOD), Pursuant to a resolution of the shareholders of the Company at its Annual General Meeting held on 21 July 1999, the Company's board of directors approved a resolution on 14 September 1999 to implement a 4 for 1 capitalization issue payable in the form of four shares for every one share held at 9.

Vodafone AirTouch Plc Approves a Resolution

Mersereau also advises clients on capitalization issues relating to the tangible property "repair regulations.

Crowell & Moring Bolsters Tax Group with Partner Dwight N. Mersereau

The IRS continues to provide guidance for certain industries through its Industry Issue Resolution program, addressing capitalization issues and challenges unique to certain industries.

IRS provides safe-harbor methods of accounting to cable system operators

WAM is best described as a relative value manager emphasizing mid-to-large capitalization issues with both value and GARP (Growth At a Reasonable Price) overlays.

WOOD ASSET MANAGEMENT, INC

In simplistic terms and ignoring the capitalization issues, a property that a building owner might realistically value at $1 million would be assessed at $450,000 by the city using its targeted 45 percent ratio, but assessed at $350,000 if using a generic 35 percent SBEA figure.

City moves to cut tax refunds

The rating downgrades reflect the unresolved capitalization issues that have persisted for Asian Re due to continued reserve development stemming from the Thailand flooding losses and delay in execution of its capital infusion plan in a timely manner.

A.M. Best Downgrades Ratings of Asian Reinsurance Corporation

There are also risks associated with small and mid-capitalization issues such as market illiquidity and greater market volatility than larger capitalization issues.

Hedge Funds are a Mystery to Most Investors

It is particularly timely, given ongoing developments on capitalization issues.

FedEx flies high: Sixth Circuit affirms deductibility of repairs

Olson's work at the Treasury Department on tax shelters, capitalization issues, and simplification, as well as her continuing outreach to TEI and other tax organizations.

TEI to honor past president Betty Wilson, former Assistant Treasury Secretary Pam Olson

The committee said that "in general, the proposed regulations substantially simplify and resolve the numerous capitalization issues generated by the [U.

The AICPA tax executive committee in April commented on regulations the IRS and the Treasury Department had proposed regarding the deduction and capitalization of expenditures for acquiring, creating or enhancing intangible assets (www.cpa2biz.com/Resource Centers/Tax/Tax+Accounting/INDOPCO_regs.htm). (Tax Notes)