What Is the Statement of Changes in Equity?

Statement of changes in equity describes the movement during the period between different components of shareholders’ equity while reconciling their opening and closing balances by adding up transactions undertaken during the year. The transactions may include:

  1. Issuance of share capital (at par or at premium)
  2. Transfer to and between reserves
  3. Conversion of debt into equity
  4. Announcement of bonus shares
  5. Announcement of cash dividend
  6. Adjustment for profit/loss for the year
  7. Adjustments for other comprehensive income

Below is a sample statement of changes in equity:

One thought on “What Is the Statement of Changes in Equity?”

  1. rxoc mining says:

    Great article, very useful !!

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