Included in a statement of changes in equity are the following items:
I Opening and closing balances.
II Profit or loss for the period.
III Gains or losses not recognised in the statement of profit or loss and other comprehensive income.
IV New share issues.
V Dividends paid.
A)I,II & III only
B)II,III and IV only
C)I,IV and V only.
D)I,II,IV and V only.

Question

Quizplus · Accepted Answer

The statement of changes in equity shows the changes in equity during the period. Opening and closing balances are necessary to determine changes. Profit or loss for the period affects equity, which is also shown in the statement of changes in equity. Gains or losses not recognized in the statement of profit or loss and other comprehensive income affects equity, thus, recognized in the statement of changes in equity. New share issues impact equity and dividends paid reduce equity, which are also shown in the statement of changes in equity. Therefore, I, II, IV and V are included in the statement of changes in equity.

Included in a Statement of Changes in Equity Are the Following