What is Statement Of Changes In Equity?

FRS 101 & Statement of changes in equity

In FRS 101 a complete set of financial statement should include the statement of changes in equity. In basic accounting, we understand that equity comprises shares and reserves. Hence, this statement of changes in equity reflects  ALL CHANGES IN SHARE CAPITAL AND RESERVES to be disclosed in this statement.

Under FRS 101, the following items are presented on the face of the statement of changes in equity:

  1. Net profit or loss for the period
  2. Items of income, gain, expense or loss that are directly recognized in the reserves in compliance with other accounting standards
  3. Total profit attributable to equity holders and minority interest
  4. Effect of changes in accounting policies and corrections of errors


Following are items that can be presented on the face of the statement of changes  in equity or in the notes:

  1. Capital transactions with equity holders showing separately any distribution to equity owners
  2. Opening and closing balance of retained profit at the end of the period and the changes for the period
  3. Opening and closing balance of each class of equity capital, share premium and each reserve and separately disclosing the changes during the period.

{ Also see FORMAT of Statement of Changes in Equity}

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