CHAPTER 5
STATEMENT OF
CHANGES IN EQUITY
Our Objectives
Learn
Understand
Illustrate
CHANGES IN EQUITY
- summarizes the changes occurred in the owner’s equity
“CAPITAL”
- also referred to as “STATEMENT OF RETAINED
“CAPITAL”
“CAPITAL”
“CAPITAL”
EARNING”
- a business' financial statement that measures the changes
in owners' equity throughout a specific accounting period. It
covers the following elements: Net profit or loss. Dividend
payments.
WHY is it included
in Financial
Statement?
Information included
Effects of change in
accounting policy
Correction of prior
Results
from:
*profit or loss
*other comprehensive
period error
income
*transactions with owners
Total comprehensive
income
(CONTRIBUTIONS BY /
DISTRIBUTIONS TO
OWNER
Information included
RETROSPECTIVE
ADJUSTMENTS/RESTATEMENTS
-
Adjustments to the opening
balance of retained earnings than
period
PAS 1
*Allows the disclosure f dividends,
amount per share in the statement
of changes in equity or in the notes
CONNECTIONS
CONNECTIONS
01
INCOME STATEMENT
PROFIT
02
CHANGES IN EQUITY
03
FINANCIAL POSITION
PROFIT to get
ASSETS
ENDING CAPITAL
LIABILITY
+-
ENDING CAPITAL
ILLUSTRATION
Jagonos Fitness Gym
Statement of Changes in Equity
For the year ended, Dec. 31, 2022
Jagonos, Capital 01/01/2022
Add: Additional investment (Capital)
Profit of the period
Total
xxx
xxx
xxx
xxx
xxx
Less: Withdrawals
(xxx)
Jagonos, Capital 12/31/2022
xxx
Note that;
01
02
03
Non-owner
Changes in equity are presented in
the statement of comprehensive
income
Owner
Changes are presented in the
statement of changes in equity
Dividends
Disclosed either in the statement of
changes in equity or in the notes
Thank
you!
Prepared and presented by:
Jowenda Kate F. Jagonos