Statement of Changes in Equity

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jow774
jow774 Registered Posts: 465 Dedicated contributor 🦉
Sorry if this has been posted before.

I dont really understand what this is and where it fits in. Does it go as a note to the accounts? I also cant find anything that looks like the one in my books on any past paper, can someone help. Im confused.

Thanks

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  • jow774
    jow774 Registered Posts: 465 Dedicated contributor 🦉
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    Ok so after some surfing is this just the:-

    Retained earnings plus profit for year less dividends plus revaluation reserve???

    Cause in my kaplan book it shows it as something bigger and more involved? Please can some clarify?

    Thanks
  • sammyd22
    sammyd22 Registered Posts: 207 Dedicated contributor 🦉
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    jow774 wrote: »
    Sorry if this has been posted before.

    I dont really understand what this is and where it fits in. Does it go as a note to the accounts? I also cant find anything that looks like the one in my books on any past paper, can someone help. Im confused.

    Thanks

    A statement of changes in equity is a table you create to show the movements in equity during the accounting period.

    You have:
    Retained earnings bf + Profit for year = Retained earnings cf
    Revauation Reserve bf + Movements in any revaluation gains or losses = revaluation reserve cf
    Share Capital bf + any issued shares during the period = Issued share capital cf
    Share Premium bf + and share premium received during the period = Share premium cf

    The total of conbined Cf above is the total of your equity.

    These cf figures will be the figures presented in your statement of financial position under equity. The changes in equity table shows the movement in equity between periods and will usually be created after you have completed the Statement of comprehensive income.

    Hope this helps
  • jow774
    jow774 Registered Posts: 465 Dedicated contributor 🦉
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    Thanks Steven, yes it does.
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    uppity up Steve explains this well
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
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    I take it that there will be more info (ie bulletpoints) than on the past papers if we have to do a statement of changes in equity?
  • Andypandy
    Andypandy Registered Posts: 526 Epic contributor 🐘
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    Not really, it's just an extra bit bunged onto the bottom of the income statement. You'd have to do the same workings anyway to find the retained earnings for the statement of financial position. I find it helpful.
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