The statement of changes in equity (SoCiE) is a primary financial statement that reconciles the opening and closing balances of each component of equity during the reporting period.
Required items
The statement of changes in equity must include total comprehensive income for the reporting period, showing separately the total amounts attributable to owners of the parent and to non-controlling interests. In addition, for each component of equity, it must include the following (IFRS 18.107-108):
- the effects of retrospective adjustments for changes in accounting policies;
- the effects of retrospective restatements to correct errors; and
- a reconciliation between the carrying amount at the beginning and the end of the period, showing separately the effects of profit or loss, OCI and transactions with owners in their capacity as owners.
Too many IFRS updates? I know the feeling! That's why I created Reporting Period. It's a concise monthly summary of IFRS developments and Big 4 insights for accounting professionals. It's completely free, with zero spam, and you can unsubscribe anytime with one click. Interested? Leave your email below:
Additional requirements
The following information must either be presented on the face of the SoCiE or disclosed in the notes (IFRS 18.109-112):
- for each component of equity, an analysis of other comprehensive income by item; and
- dividends recognised as distributions to owners during the reporting period, together with the related amount of dividends per share.
More about IFRS 18
See other pages relating to IFRS 18:
Overview of IFRS 18Statement of Profit or Loss
Categories in the Statement of Profit or Loss
Specified Main Business Activities
Presentation and Disclosure of Operating Expenses
Cost of Sales
Other Comprehensive Income
Statement of Financial Position
Classification of Assets and Liabilities as Current and Non-current
Statement of Changes in Equity
Consistency of Presentation, Disclosure and Classification
Aggregation and Disaggregation in Financial Statements
Offsetting in Financial Statements
Transactions with Owners in Their Capacity as Owners
Identification of Management-Defined Performance Measures
Presentation and Disclosure of Management-Defined Performance Measures
Transition from IAS 1