Contributed Surplus


DEFINITION of 'Contributed Surplus'

The amount of money that a company earns from sources other than its profits, such as when a company issues and sells shares at a price greater than their par value. The contributed surplus figure helps both investors and the company to distinguish between non-operational and operational income. It is found within the balance sheet.

BREAKING DOWN 'Contributed Surplus'

If this value was combined with operational earnings, investors would have a hard time forecasting relatively accurate future earnings because earnings from contributed surplus are not a part of ongoing business operations.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Par Value

    The face value of a bond. Par value for a share refers to the ...
  3. Stock

    A type of security that signifies ownership in a corporation ...
  4. Shareholders' Equity

    A firm's total assets minus its total liabilities. Equivalently, ...
  5. Operating Expense

    A category of expenditure that a business incurs as a result ...
  6. Earnings

    The amount of profit that a company produces during a specific ...
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