What is a Statement of Changes in Equity used for?

Question

Why is it useful?

Seperate question if you can be bothered,

what other statements or report are required in a set of published accounts, aside from an income statement and balance sheet?

thanks very much

Answer 1

A statement of changes in equity shows the following:
(a) profit or loss for the period;
(b) each item of income and expense for the period that, as required by other Standards or by Interpretations, is recognised directly in equity, and the total of these items;
(c) total income and expense for the period (calculated as the sum of (a) and (b)),
showing separately the total amounts attributable to equity holders of the parent and to minority interest; and
(d) for each component of equity, the effects of changes in accounting policies and corrections of errors recognised in accordance with IAS 8.
A statement of changes in equity that comprises only these items shall be titled a statement of recognised income and expense.

The statement may also show:
(a) the amounts of transactions with equity holders acting in their capacity as equity holders, showing separately distributions to equity holders;
(b) the balance of retained earnings (i.e. accumulated profit or loss) at the beginning of the period and at the balance sheet date, and the changes during the period; and
(c) a reconciliation between the carrying amount of each class of contributed equity and each reserve at the beginning and the end of the period, separately disclosing each change.

A complete set of financial statements comprises:
(a) a balance sheet;
(b) an income statement;
(c) a statement of changes in equity showing either:
(i) all changes in equity, or
(ii) changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders;
(d) a cash flow statement; and
(e) notes, comprising a summary of significant accounting policies and other explanatory notes.