The statement of changes in equity:
A) Is part of the statement of comprehensive income.
B) Shows only the ending balances in shareholders' equity.
C) Describes changes in paid-in capital and retained earnings subcategories.
D) Does not include changes in treasury shares.
E) Is not reported under IFRS.

Question

Quizplus · Accepted Answer

The statement of changes in equity describes the changes in paid-in capital and retained earnings subcategories. It does not show only the ending balances in shareholders' equity, and it includes changes in treasury shares. It is a separate statement from the statement of comprehensive income. The statement of changes in equity is required under both US GAAP and IFRS.

The Statement of Changes in Equity