The statement of changes in equity is a financial statement that reports all changes to a company’s owners’ equity over an accounting period, including total comprehensive income, owners’ contributions and withdrawals, dividends and treasury share transactions.
|Statement of Changes in Equity|
|Equity (beginning of period)|
|+/− Effects from Restatements (IAS 8)|
|Adjusted equity (beginning of period)|
|+/− Other Comprehensive Income|
|+/− Net Income|
|+/− Transactions with Owners|
|= Equity (end of period)|
The statement is a reconciliation of the beginning and ending balances in a company’s equity during a reporting period and may show such details as:
- Correction for prior period errors;
- Adjustment for changes in accounting policy;
- Revaluation adjustments;
- Surplus or deficit for the period;
- Distributions to owners;
- Returns of capital;
- Appropriations (equity injections);
- Contributions by owners; and
- Transfers between equity components.
US GAAP does not require a statement of changes in equity, it requiring instead that changes in each caption of stockholders’ equity be presented in either a footnote or a separate statement. IFRS requires a statement of changes in equity which presents specific line items.