Surplus

This means more than need or use and in the financial field the word surplus is called on several things such as surplus profits, surplus capital and so on.

More than is needed or used; in finance it may refer to surplus profits, surplus capital, etc.

- Used to prepare and present financial statements and disclosures.
- Used when classifying items and explaining accounting impacts to users of the financials.

- Example: During financial statement preparation, **Surplus** guides how information is presented and disclosed.

- Why it matters: Enhances transparency, improves comparability, and reduces misunderstanding by stakeholders.