Statement of changes in equity

Statement of Changes in Equity

A financial statement that details the movements in shareholders’ equity over a reporting period, including changes from profit or loss, dividend payments, share issues or buybacks, and other comprehensive income items.

For instance, a public company’s statement might show beginning equity of $10 million, plus net income of $2 million, minus dividends of $500,000, plus $200,000 from issued shares, resulting in ending equity of $11.7 million.

This statement helps investors understand how ownership interests change over time and provides transparency about capital transactions and distributions. It bridges the gap between consecutive balance sheets by explaining the changes in equity accounts.