Statement of Changes in Equity
Tracking Equity Over Time
The statement of changes in equity explains how each equity account changed during the reporting period. It provides transparency about investments, earnings, dividends, share issuances, share repurchases, and comprehensive income.
- Beginning balances.
- Net income.
- Other comprehensive income.
- Share issuances.
- Dividends.
- Treasury stock transactions.
- Ending balances.
Tip
Follow each equity account from beginning to ending balance to understand the company's financing activities.
Summary
This statement provides a complete picture of how shareholders' equity changed during the accounting period.