Statement of changes in equity is an important financial statement that shows movements in shareholder’s equity portion during the reporting period. It discloses two types of movements which are:
The transaction with shareholders such as issuance of new shares or declaration of dividends
Transactions that cause changes in total comprehensive income such as net profit/ loss during the reported period and revaluation on fixed assets etc.
Components
The following are the most common components of the statement of changes in equity:
- Common stock
- Share premium
- Share repurchase/ treasury stock
- Capital reserve
- Retained earnings
- Loss/ gain on sale of securities available for sale
- Revaluation surplus on fixed assets of the entity
Specimen Format
ABC Company
Statement of Changes in Equity
For the Year Ended 31 Dec, 2015
| Share Capital | Retained Earnings | Revaluation Surplus | Total | |
| Balance 01-01-2014 | 200,000 | 60,000 | – | 260,000 |
| Changes in Equity during the year 2014 | ||||
| Share capital issued | – | – | – | |
| Profit/ (loss) for the year | – | 50,000 | – | 5,000 |
| Revaluation gain | – | – | 20,000 | 20,000 |
| Dividends | – | (30,000) | – | (30,000) |
| Balance 31-12-2014 | 200,000 | 80,000 | 20,000 | 300,000 |
| Changes in Equity during the year 2015 | ||||
| Share capital issued | ||||
| Profit/(loss) for the year | – | 60,000 | – | 60,000 |
| Revaluation gain | – | – | 10,000 | 10,000 |
| Dividends | – | (40,000) | – | (40,000) |
| Balance 31-12-2015 | 200,000 | 100,000 | 30,000 | 330,000 |