Statement of Changes in Equity

jow774

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

jow774

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

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

Thanks Steven, yes it does.

reddwarf

uppity up Steve explains this well

Esme

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

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.