Statement of Changes in Equity

A. Statement of Changes in Equity

As a separate component of its financial statements, an enterprise should present a statement showing the following six items:

1. The net profit or loss for the period;

2. Each item of income and expense, gain or loss which, as prescribed by other Standards, is recognized directly in equity, and the total of these items;

3. The cumulative effect of changes in accounting policy and the correction of fundamental errors dealt with under the benchmark treatment in IAS 8;

4. Capital transactions with owners and distributions to owners;

5. The balance of retained earnings (referred to as "accumulated profit or loss") at the beginning of the period and at the balance sheet date, and the movements for the period; and

6. A reconciliation between the carrying amount of each class of equity capital, share premium and each reserve at the beginning and the end of the period, separately disclosing each movement.

(IAS 1, Para 86)

B. Statement of Recognized Gains and Losses

1. As an alternative to the "Statement of Changes in Equity,'' an enterprise may present as a separate component of its financial statements, a "Statement of Recognized Gains and Losses" showing the following three items:

   1. The net profit or loss for the period;

   2. Each item of income and expense, gain or loss which, as prescribed by other Standards, is recognized directly in equity, and the total of these items; and

   3. The cumulative effect of changes in accounting policy and the correction of fundamental errors dealt with under the benchmark treatment in IAS 8.

2. When a "Statement of Recognized Gains and Losses" is presented (as an alternative to the "Statement of Changes in Equity") the following three items are presented in the notes to the financial statements:

   1. Capital transactions with owners and distributions to owners;

   2. The balance of retained earnings (referred to as "accumulated profit or loss") at the beginning of the period and at the balance sheet date, and the movements for the period; and

   3. A reconciliation between the carrying amount of each class of equity capital, share premium and each reserve at the beginning and the end of the period, separately disclosing each movement.

   (IAS 1, Para 86)