The statement of changes in equity-financial statement , Financial Accounting

Assignment Help:

THE STATEMENT OF CHANGES IN EQUITY

This is a very important report because it explains the movements in the shareholder funds during the year and also acts as a link between the income statement and the balance sheet.

The report also shows the total gains or losses made by the company during the year.  Some of these gains or losses may not be included in the income statement e.g. gains or losses on revaluation or PPE and investments (long -term)

The format of the statement of changes in equity is given as follows:

 

Preference share capital

Ordinary share capital

Share premium

Revaluation reserve

General reserve

Retained profits

TOTAL

 

£

£

£

£

£

£

£

i)         Balance at 1.1

x

x

x

x

x

x

x

ii)       Changes in a/c policy/correction of error

 

-

 

-

 

-

 

-

 

-

 

(x)

 

(x)

iii)      Balance as restated (i +ii)

x

x

x

x

x

x

x

iv)     Gain/losses on revaluation PPE

 

-

 

-

 

-

 

x

 

-

 

-

 

x

v)       Transfer to retained profits on sale of PPE

 

-

 

-

 

-

 

(x)

 

-

 

x

 

-

vi)     Gain losses on investment revaluation

 

-

 

-

 

-

 

x

 

-

 

-

 

x

vii)    Foreign currency exchange gain/losses

 

-

 

-

 

-

 

x

 

-

 

-

 

x

viii)  Net gains/losses directly reported in equity (iv + v +vi + vii)

 

 

-

 

 

-

 

 

-

 

 

x

 

 

-

 

 

x

 

 

x

ix)     Profit for the period

-

-

-

-

-

x

x

x)       Total gains/losses recognized during the year (viii + ix)

 

 

-

 

 

-

 

 

-

 

 

x

 

 

-

 

 

x

 

 

x

xi)     Issue of shares

x

x

x

-

-

-

x

xii)    Transfer to general reserve

 

-

 

-

 

-

 

-

 

x

 

(x)

 

-

xiii)  Dividends: interim paid

-

-

-

-

-

(x)

(x)

xiv)  Final proposed (If prop before  year end)

 

-

 

-

 

-

 

-

 

-

 

(x)

 

(x)

xv)   Balance as at 31.12 ( x + xi + xii + xiii)

 

x

 

x

 

x

 

x

 

x

 

x

 

x


Related Discussions:- The statement of changes in equity-financial statement

Changes in accounting estimates-financial statement, Changes in accounting ...

Changes in accounting estimates In preparing financial statements, it may be difficult to arrive at exact values for certain items to be presented in the financial statements and

Tracing trust property-breach of law-trusts laws , Tracing trust property ...

Tracing trust property   Apart from suing the trustee, in the event of a breach of trust, the beneficiary may follow the trust property and recover it from third parties, or the p

Define return on capital employed, Q. Define Return on capital employed? ...

Q. Define Return on capital employed? Return on capital employed (ROCE) is as well called accounting rate of return. Distinctly IRR ROCE uses average annual accounting profit b

Accounting for lease, what are the concept of economic substance over legal...

what are the concept of economic substance over legal form under accounting for lease?

What is goodwill, Find the heading Goodwill. What type of an asset is goodw...

Find the heading Goodwill. What type of an asset is goodwill? Does Amazon write off this asset? Explain what the company does

Statement of surplus capital-partnership, Statement of surplus capital ...

Statement of surplus capital v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML

Prepare financial report for large accounting firm, Question: You are a...

Question: You are a member of a large accounting firm which is responsible for preparing financial reports, including statements and notes to the accounts; and for advising sta

Finacial stament, Ask question #Minimum 10010 qestions words accepted#

Ask question #Minimum 10010 qestions words accepted#

Dividends-group accounts, DIVIDENDS The dividends that appear in the cons...

DIVIDENDS The dividends that appear in the consolidated statement of change in equity are for the holding company only. This is because the dividends of the subsidiary belong to

prepare the balance sheet and financial statements, The assets and liabili...

The assets and liabilities of Toronto Service Inc. as of December 31, 2008, and revenue and expenses for the year ended December 31, 2008 are listed below: Accounts

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd