Statement of Changes in Equity

The statement of changes in equity presents a reconciliation of the beginning and

ending balances in a company’s equity during a reporting period. The statement
starts with the beginning equity balance, and then adds or subtracts such items as
profits, capital investments or reductions, and dividend payments to arrive at the
ending balance.

Changes in equity over an accounting period include the following elements:

 Net income or loss during the accounting period

 Increase or decrease in capital
 Capital withdrawals or dividend payments to shareholders