TRISHA JANE S TORRES 12 ABM-21

ARELLANO UNIVERSITY
Senior High School Department
SY2020-2021

Lesson Plan in: Fundamentals of Accountancy Business & Management 2

I. Topic:Definition/ Description of the Statement of Changes in Equity (SCE)
 Core Values: Conceptual Thinking
II. Objectives:
 Understand the Definition of the SCE
III. References:
 Diwa Senior High School Series, Fundamentals of Accountancy, Business &
Management 2
IV. Teaching Procedures/ Strategies:
A. Daily Routine
 Checking of Attendance
B. Simple Recall
 Review knowledge about the Multi-Step SCI
C. Motivation
 Incentives will be given to those share their knowledge on the topic
D. Development of the lesson
 Questions/ Activity:
1. How do you create a statement of changes in equity?

Steps to Prepare Statement of Changes in Equity

 Step #1 Firstly, determine the value of the equity at the

beginning of the reporting period, which is the same as the
value at the end of the last reporting period. It is the opening
balance of equity
 Step #2 Next, determine the net income or loss booked by the
firm.
 Step #3 Next, determine the value of the dividend declared by
the management for the reporting period.
 Step #4 Next, determine all the adjustments for the reporting
period, which may include effects of changes in accounting
policies, correction of prior period errors, changes in reserve
capital, and share capital.
 Step #5 Finally, the closing balance of equity can be derived
by adding net income to the opening balance of equity ,
deducting dividends, and other adjustments , as shown below

2. What is the purpose of a statement of changes in equity?

 The statement of changes in equity assists financial
statement users in identifying the factors that contribute
to a change in the owners' equity over the accounting
period.Moreover, it helps unlock the detailed financial
information that is not usually found on a balance sheet, as
the data specifying equity assets is not logged distinctly in
the other financial statements.