An entity shall present a statement of changes in

equity showing the following

1. Comprehensive income for the period
2. For each component of equity, the effects of changes in accounting policies
and correction of correction of errors
3. For each component of equity, a reconciliation between the carrying amount
at the beginning and end of the period, separately disclosing changes from:
a. Profit or loss
b. Each item of other comprehensive income
c. Transactions with owners in their capacity as owners showing separate
contributions by and distributions to owners.
Management Accounting

3. Equity Items for Corporation

A. Share Capital - portion of authorized shares capital that has
been fully paid
B. Share Premium - it is the excess when shares of stocks are
sold above par value.
C. Treasury shares – shares of stock which have been issued and
fully paid for, but subsequently reacquired by the issuing
corporation
D. Retained Earnings – accumulated profits/losses less dividends
D.1 Appropriated - set apart or reserved for specific purpose
D.2 Unappropriated – free or unrestricted
Statement of Financial Position (Balance Sheet)
it shows the financial standing of an entity as to its assets, liabilities and equity
Assets
resources controlled by the business

Liabilities
obligations to pay by the business

Equity (Net Assets/Net Worth)

residual interest in the assets of the business after deducting liability
Assets
Current Assets
assets that are expected to be realized or consumed within 12 months

Noncurrent Assets
assets that are not classified as current assets
Current Assets
PAS 1, paragraph 66, provides that an entity shall classify an asset as current
when:

a. The asset is cash or cash equivalent unless the asset is restricted to settle
a liability for more than 12 months after the reporting period
b. The entity holds the asset primarily for the purpose of trading
c. The entity expects to realize the asset within 12 months after reporting
period
b. The entity expects to realize the assets or intends to sell or consume it
within the entity’s normal operating cycle.
Example of Current Assets
Cash and cash equivalents (cash on hand, cash in bank
and petty cash)
Short-term investments (trading securities)
Trade and other receivables
(accounts receivable, notes receivable, interest receivable,
commission receivable, rent receivable and others)
Inventory
Prepaid expense (prepaid supplies, prepaid insurance,
prepaid rent, prepaid advertising and others)