Bonus definition, something given or paid over and above what is due. See more.
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A bonus is a financial compensation that is above and beyond the normal payment expectations of its recipient. Bonuses may be awarded to both entry-level employees and to senior level executives.
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This article discusses issues related to bonus liabilities of employers on the accrual method of accounting, when the bonuses are paid after the tax year in which the related services are performed by the eligible employee(s) but within 2½ months after the year end.
Bonus shares do not change the resources available to the entity to earn a return for the shareholders & therefore the effect of change in number of shares in the EPS calculation must be cancelled in the year in which bonus issue takes place and as well as in the prior periods presented.
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