How to Prepare a Statement of Changes in Equity
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How to Prepare a Statement of Changes in Equity
In this lesson we will explore the statement of changes in equity. Specifically, we will walk through the six steps to preparing the statement and practice these steps with a simple example.
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Statement of Changes in Equity (SOCE) Financial Accounting The Statement of Changes in Equity explains the movements in owners’ equity during the accounting period. It shows how the opening equity balance changes as a result of profit or loss for the year, capital contributions, dividends paid, and other adjustments, arriving at the closing equity balance. In the illustrated statement: The opening balances of share capital and retained earnings are brought forward. Profit for the year increases
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