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Statement of Changes in Equity

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:

  • Retrospective application of changes in accounting policies to the previous period
  • Retrospective restatement of prior period errors
  • Reconciliation of the changes of each component of equity in the current period

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).

Illustrative Example

A typical Statement of Changes in Equity consists of the following:


Statement of Changes in Equity
  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 International Financial Reporting Standards

Term(s)

IDNameClearx
IAS01IAS 1 Presentation of Financial StatementsIAS01
IFRSInternational Financial Reporting StandardsIFRS
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