05262821 Level II Training Book

12/3/19

STATEMENT OF CHANGES IN EQUITY STATEMENT OF CHANGES IN EQUITY , ALSO KNOWN AS THE STATEMENT OF RETAINED EARNINGS, DETAILS THE MOVEMENT IN OWNERS' EQUITY OVER A PERIOD. THE MOVEMENT IN OWNERS' EQUITY IS DERIVED FROM THE FOLLOWING COMPONENTS: • NET PROFIT OR LOSS DURING THE PERIOD AS REPORTED IN THE INCOME STATEMENT • SHARE CAPITAL ISSUED OR REPAID DURING THE PERIOD • DIVIDEND PAYMENTS

• GAINS OR LOSSES RECOGNIZED DIRECTLY IN EQUITY (E.G. REVALUATION SURPLUSES) • EFFECTS OF A CHANGE IN ACCOUNTING POLICY OR CORRECTION OF ACCOUNTING ERROR

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