Irrevocable cash inflow from shareholders to the company account which aims to support and develop the future benefits from the Business.
Basically this is in-house investment from Business owners.
The only difference with initial capital in is the later timing of this cash inflow.
The main reasons of the APIC are:
- a substantial Business growth opportunity
- a sudden loss of Equity, usually due to the Impairment Losses
The alternative mechanism is the Shareholder Loan.
See also
Business / Business Administration / Financial Management / Financial Accounting / Statement of Financial Position (Balance Sheet)