INTERMEDIATE ACCOUNTING 3

Chapter 5: Statement of Changes in Equity

Statement of Changes in Equity
The statement of changes in equity shows the following
information:
a. Effects of change in accounting policy
(retrospective application) or correction of prior
period error (retrospective restatement);
b. Total comprehensive income for the period; and
c. For each component of equity, a reconciliation
between the carrying amount at the beginning and
the end of the period, showing separately changes
resulting from:
i. profit or loss;
ii. other comprehensive income; and
iii. transactions with owners, e.g., contributions
by and distributions to owners.

Statement of Comprehensive Income vs. Statement of

Changes in Equity
“Non-owner” changes in equity are presented in the
statement of comprehensive income while “owner”
changes (e.g., contributions by and distributions to
owners) are presented in the statement of changes in
equity. This is to provide better information by
aggregating items with shared characteristics and
separating items with different characteristics.

Disclosure of Dividends
Dividends declared by an entity are disclosed either in
the (a) notes or (b) statement of changes in equity.