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
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| 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 |
