Statement of changes in shareholders' equity
The statement of changes in shareholders' equity (also equity analysis) provides information about the reasons behind the developments that value has taken, for all equity accounts of a company.
The statement of changes in shareholders' equity is created for the financial statement according to International Accounting Standards (IAS 1.96), and for the consolidated financial statement according to the German Commercial Code.
Because various provisions exist for the statement, according to international accounting standards which allow or demand a profit-neutral allocation of amounts to equity, the statement of changes in shareholders' equity is of increased importance. It hardly ever happens that there are changes in equity without a statement of changes in shareholders' equity.
According to IAS 1.96, the following must be contained in the statement of changes in shareholders' equity:
- Result for the period
- Total profits and expenses for the period, which are represented in terms of their effect on profit in the P&L, or profit-neutrally directly in equity
- Effects of changes in the balance-sheet and valuation methods (according to IAS 8) on the equity portion