Contributed Surplus

What is 'Contributed Surplus'

Contributed surplus is 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.

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RELATED FAQS
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  3. Why are economists interested in the consumer surplus?

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  4. In a Corporation's financials, surplus earnings are accounted for as ...

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