GENERAL KNOWLEDGE

Detailed explanation-1: -These changes in equity arise due to the fluctuations in dividends, profit or loss, rectifying errors or alteration in accounting policies. The statement starts with the opening equity balance. Then, it further adds and deducts things over time, like profits and dividend payments, to reach the end balance.

Detailed explanation-2: -What is a statement of changes in equity? A statement of changes in equity is, for many businesses, the missing link between their income statements and their balance sheet. It provides an account of how equity moves through the business throughout the reporting period (usually one year).

Detailed explanation-3: -Equity, in the simplest terms, is the money shareholders have invested in the business including all accumulated earnings. An equity statement is a financial statement that a company is required to prepare along with other important financial documents at the end of the financial year.

Detailed explanation-4: -What is the Statement of Changes in Equity? Statement of Changes in Equity refers to the reconciliation of the opening and closing balances of equity in a company during a particular reporting period. It explains the connection between a company’s income statement and balance sheet.