A Statement of Changes in Equity is a Financial statement of all changes in equity arising from transactions with owners (i.e. owner changes in equity) reflecting the increase or decrease in net assets in the period. The Statement of Changes in Equity provides a linkage between the entity’s Statement of Financial Position and its Statement of Comprehensive Income.
A Statement of Changes in Equity is partitioned into three segments:
Alternative names for Statement of Changes in Equity include: Statement of Changes in Owner's Equity (sole proprietors), Statement of Changes in Partners' Equity (partnerships), Statement of Changes in Shareholders' Equity (Corporation), and Statement of Changes in Taxpayers' Equity (Government).
A typical Statement of Changes in Equity consists of the following:
| Share Capital | Retained Earnings | Translation of Foreign Operations | Investments in Equity Instruments | Cashflow Hedges | Revaluation Surplus | Total | Non-controlling Interests | Total Equity | |
| Balance at 1 January CY-1 | 600,000 | 118,100 | (4,000) | 1,600 | 2,000 | – | 717,700 | 29,800 | 747,500 |
| Changes in accounting policy | – | 400 | – | – | – | – | 400 | 100 | 500 |
| Restated balance | 600,000 | 118,500 | (4,000) | 1,600 | 2,000 | – | 718,100 | 29,900 | 748,000 |
| Changes in equity for CY-1 | |||||||||
| Dividends | – | (10,000) | – | – | – | – | (10,000) | – | (10,000) |
| Comprehensive income CY-1 | – | 53,200 | 6,400 | 16,000 | (2,400) | 1,600 | 74,800 | 18,700 | 93,500 |
| Balance at 31 December CY-1 | 600,000 | 161,700 | 2,400 | 17,600 | (400) | 1,600 | 782,900 | 48,600 | 831,500 |
| Changes in equity for CY | |||||||||
| Issue of Share Capital | 50,000 | – | – | – | – | – | 50,000 | – | 50,000 |
| Dividends | – | (15,000) | – | – | – | – | (15,000) | – | (15,000) |
| Comprehensive Income CY | – | 96,600 | 3,200 | (14,400) | (400) | 800 | 85,800 | 21,450 | 107,250 |
| Transfer to Retained Earnings | – | 200 | – | – | – | (200) | – | – | – |
| Balance at 31 December CY | 650,000 | 243,500 | 5,600 | 3,200 | (800) | 2,200 | 903,700 | 70,050 | 973,750 |
Example based on IFRS Taxonomy Illustrative Examples
Statement of Changes in Equity 0 0 Statement, Change, Equity, Statement of Changes in Equity, Financial Statement, Annual Reports, Equity, Partners' Equity, Owner's Equity, Taxpayers' Equity, Finance A financial statement of all changes in equity arising from transactions with owners. It links the statement of financial position and the statement of comprehensive income