This Additional Paid-In Capital Excel Template (APIC) will help you calculate the value of share capital above its stated par value. Additional Paid in Capital, or sometimes referred to as contributed surplus, is an item found in the balance sheet in the shareholders' equity Section. APIC can be created whenever a company issues new shares and can be reduced when a company repurchases its shares. It is important to note that this item is not marked to market daily, and is recorded on time of issuance, and adjusted in a repurchase event.
APIC FormulaThe formula for calculating APIC is as follows: Additional Paid In Capital = (Issue Price − Par Value) x Number of Shares Issued
Applications in Financial ModelingCompanies sometimes create a separate supporting schedule in their financial models to record the par value, issue price, and any new issuance or repurchase of shares. This helps companies properly lay out their share capital and assess the impacts on the cash flow statement and balance sheet.
Learn More About This TopicRead CFI's guide on APIC to have a better understanding of the concept and application in companies' financial statements in real life!