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Statement of Changes in Equity - Coggle Diagram
Statement of Changes in Equity
IAS 1 requires an entity to present a separate statement of changes in equity
The statement of changes in equity provides an analysis of the change in shareholders' equity over an accounting period
The key components of equity include share capital or funds contributed by shareholders, retained earnings and other components such as revaluation surplus
The statement must show
Total comprehensive income for the period, showing separately amounts attributable to owners of the parent and to NCIs
Reconciliations between the balances at the beginning and the end of the period for each component of equity such as share capital, share premium, revaluation surplus and retained earnings. The closing balances represent the balance of shareholders' equity at the end of the reporting period as reported in the SOFP
Movement in shareholders' equity over an accounting period typically includes the following elements
Capital injections or withdrawals by the shareholders
Shown as the issue or redemption of shares
Issue includes rights issue and other new share issues
Redemption includes bonus issues and companies buying back their own shares
Any share issue below the market price dilutes share value
Dividends
Representing distribution of wealth attributable to the shareholders
Prior period adjustments
If prior period mistakes or errors are material, the effects of any retrospective application of accounting policies or restatements are made in accordance with IAS 8
Profit or loss attributable to shareholders
During the period, as reported in the statement of profit or loss and OCI
Revaluation gains and losses
Recognised during the period must be presented in the in the statement of changes in equity to the extent that they are recognised outside the statement of profit or loss
Any other gains and losses
Not recognised in the P&L and OCI sue as actuarial gains and losses arising from the application of IAS 19
Transfer between components of equity
When a revalued non current asset is eventually disposed of, any gain held in the revaluation surplus will be transferred from the surplus to retained earnings