Skip to contentSkip to search

Statement of changes in equity

The statement of changes in equity reconciles each equity component from opening to closing balance. Start with the opening balance for each component, add the period's profit and other comprehensive income as applicable, and include owner transactions such as issues and dividends. The resulting closing balances agree with the equity section of the statement of financial position. Reconcile each component separately rather than showing only the total movement in equity.

Worked example

It shows profit, other comprehensive income, share issues and dividends affecting equity.

Common mistake

Dividends are distributions to owners, not an expense in profit or loss.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA FA Direct September 2026–June 2027
ACCA FR Direct Official assessment-window verification pending
ACCA K1 Direct July 2027–August 2028
CIMA BA3 Direct Official assessment-window verification pending
CIMA F1 Direct Official assessment-window verification pending
FIA FFA Direct September 2026–June 2027

Related terms