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Additional paid-in capital (APIC, or sometimes referred to as capital in excess of par value) is the excess amount paid by an investor over the par value of a stock issue. In addition, contributions from an investor, such as cash or property that do not result in the issuance of new shares, are normally reflected in APIC as the par value of outstanding shares has not changed. APIC may be shown as a separate caption in the equity section of the balance sheet or combined with the related stock caption.

5.10.1 Notes received for common stock

A reporting entity may receive a note, rather than cash, as a contribution to its equity. The note may be for the sale of common stock or a contribution to paid-in capital. The question arises as to whether the note should be presented as a receivable or as contra-equity. The predominant practice is to present the note receivable as contra-equity. ASC 505-10-45-2 indicates that reporting the note as an asset is generally not appropriate, except in very limited circumstances when there is substantial evidence of intent and ability to pay in a reasonably short time period.
For nonpublic entities, evidence of intent and ability to pay in a reasonably short period may include circumstances when the notes are secured by irrevocable letters of credit or other liquid collateral, have a stated maturity in a short time period, or when the notes are collected prior to issuance of the financial statements. SAB Topic 4.E (codified in ASC 310-10-S99-2) indicates that the SEC would permit recording such a note as an asset only if the note is collected prior to issuance of the financial statements.
For other transactions with shareholders, see FG 4.5.

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