3.9 Statement of changes in equity Flashcards Preview

Interpreting Financial & Accounting Information > 3.9 Statement of changes in equity > Flashcards

Flashcards in 3.9 Statement of changes in equity Deck (4)
Loading flashcards...
1
Q

What is equity?

A

The residual interest in the assets of the entity after deducting its liability.

2
Q

What are “Retained earnings”?

A

Earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

3
Q

Companies are required to prepare a statement of changes in equity. What two items must this contain?

A

1 Total comprehensive income for the period

2 Reconciliations between the carrying amounts at the beginning and end of the period.

4
Q

What factors contribute to movement in shareholders’ equity?

A
  • capital injections
  • dividends
  • prior period adjustment (i.e. accounting for previous errors)
  • profit or loss
  • revaluation gains and losses
  • other gains and losses
  • transfer between reserves

Decks in Interpreting Financial & Accounting Information Class (161):