The contributed surplus is the amount of capital from the issuance of shares above the par value. Also known as additional paid-in capital, the surplus is recorded in shareholders’ equity on the balance sheet. Breaking Down Contributed Surplus Initially, a share issuance of common shares will be allocated into two buckets — one for common
What Is Contribution Margin? The contribution margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm’s costs. The contribution margin is computed as the selling price per unit, minus the variable cost per unit. Also known as
DEFINITION of Control Control refers to having sufficient amount of voting shares of a company to make all corporate decisions. Also known as “corporate control,” this privileged position exists due to majority shareholder support or a dual-class shareholder structure, but can change through a takeover or proxy contest. BREAKING DOWN Control In most situations, control lies in
What Is a Controller? A controller is an individual who has responsibility for all accounting-related activities, including high-level accounting, managerial accounting, and finance activities, within a company. The duties of a controller include assisting with the preparation of the operating budgets, overseeing financial reporting and performing essential duties relating to payroll. Across all of the duties
What Is Control of Well Insurance? Control of well insurance, also called well control insurance, covers some or all of the costs associated with a well blowout, including regaining control, cleaning up pollution, and redrilling or restoring the well to operation. A blowout is when crude oil and natural gas are accidentally and uncontrollably released from
What Is the Convenience of Employer Test? The convenience of employer test is used to determine whether home office expenses or other work-related expenses paid by an employer are taxable. The convenience of employer test mandates that any employee expenses paid for by the employer must be solely for the convenience of the employer, and must
What Is a Conversion? A conversion is the exchange of a convertible type of asset into another type of asset—usually at a predetermined price—on or before a predetermined date. The conversion feature is a financial derivative instrument that is valued separately from the underlying security. Therefore, having an embedded conversion feature adds to the overall
What Is an ARM Conversion Option? An ARM conversion option is a clause associated with some adjustable-rate mortgages (ARMs) that allows the borrower to convert the variable interest rate to a fixed rate within a certain time period or at certain future dates. Key Takeaways An ARM conversion option is a provision in an adjustable
What Is a Conversion Premium? A conversion premium is an amount by which the price of a convertible security exceeds the current market value of the common stock into which it may be converted. A conversion premium is expressed as a dollar amount and represents the difference between the price of the convertible and the
What Is Conversion Privilege? Conversion privilege is an insurance policy in which the insurer is required to renew or update the policy regardless of the insured’s health. An insurance policy with this type of provision allows the insured to switch to a different type of policy without submitting to a physical examination. Key Takeaways An
