surplus

That which remains of a fund appropriated for a particular purpose; the remainder of a thing; the overplus; the residue.

Ordinarily, surplus means residue or excess of assets after liabilities, including capital, have been deducted. American Life & Ace. Ins. Co. v. Love, Mo., 431 S.W.2d 177, 180.

A general term in corporate accounting that usually refers to either the excess of assets over liabilities or that amount further reduced by the stated capital represented by issued shares.

Surplus has a more definite meaning when combined with a descriptive adjective from par value statutes, e.g., earned surplus, capital surplus or reduction surplus.

- surplus earnings

- surplus profits

- surplus water

- capital surplus

- earned surplus

- initial surplus

- reserved surplus

- restricted surplus

@ accumulated surplus

That surplus which results from the accumulation of profits. Acquired surplus. Surplus acquired by the purchase of one business by another.

+ accumulated surplus

In statutes relative to the taxation of corporations, this term refers to the fund which the company has in excess of its capital and liabilities.

See retained earnings

@ appreciation surplus

Surplus which results from the revaluation of the assets of a business.

@ appropriated surplus

That portion of surplus which is earmarked or set aside for a specific purpose.

+ appropriated surplus

In accounting, portion of surplus set aside for specific purpose other than for existing liability

@ capital surplus

All surplus which does not arise from the accumulation of profits. It may be created by a financial reorganization or by gifts to the corporation. The entire surplus of a corporation other than its earned surplus.

+ capital surplus

Amounts paid to a corporation in excess of the par value of stock, generally referred to as additional paid-in capital. An equity or capital account which reflects the capital contributed for shares not allocated to stated capital. The excess of issuance price over the par value of issued shares or the consideration paid for no par shares allocated specifically to capital surplus

@ earned surplus

The portion of the surplus of a corporation equal to the balance of its net profits, income, gains and losses from the date of incorporation, or from the latest date when a deficit was eliminated by an application of its capital surplus or stated capital or otherwise, after deducting subsequent distributions to shareholders and transfers to stated capital and capital surplus to the extent such distributions and transfers are made out of earned surplus.

Earned surplus also includes also any portion of surplus allocated to earned surplus in mergers, consolidations or acquisitions of all or substantially all of the outstanding shares or of the property and assets of another corporation, domestic or foreign.

See also surplus.

+ earned surplus

Retained earnings. That species of surplus which has been generated from profits as contrasted with paid-in surplus. Term relates to net accumulation of profits; it is a part of surplus that represents net earnings, gains or profits, after deduction of all losses, but has not been distributed as dividends, or transferred to stated capital or capital surplus, or applied to other purposes permitted by law. Conine v. Leikam, Okl., 570 P.2d 1156, 1160

@ initial surplus

That surplus which appears on the financial statement at the commencement of an accounting period and which does not reflect the operations for the period covered by the statement. Paid-in surplus. Surplus paid in by stockholders as contrasted to earned surplus that arises from profits. Such being the difference between the par value and price received for the stock by the corporation. If the stock is no-par, it is the amount received that is allocated to paid-in surplus.

See also paid-in-capital

@ reserved surplus

See appropriated surplus.

@ restricted surplus

That portion of surplus which is limited or restricted as to its use

+ restricted surplus

The portion of retained earnings which cannot be distributed as dividends. The restrictions are generally due to preferred dividends in arrears, covenants in a loan agreement, or a decision by the Company's Board of Directors

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