MGAC01H3 Study Guide - Midterm Guide: Accrual, Profit Margin, Capital Market
Document Summary
Objective 7: statement of retained earnings and statement of changes in equity. Under aspe, the statement of retained earnings shows this accumulated income (or deficit) as well as how much has been paid out as dividends. Oci only exists under ifrs and that oci is closed out to accumulated other comprehensive income (aoci) Under ifrs, instead of a statement of retained earnings, we use a statement of changes in equity and show all changes in all equity accounts including retained earnings and aoci. Ifrs: accounting principle changes are allowed only if they are required by a primary source of. Gaap or if they result in reliable and more relevant information. Aspe: allows a choice of accounting policies. Retrospective restatement: involves determining the effect of the policy change on the income of prior periods that are affected. The statement of shareholders" equity is often prepared in columnar form with columns for each account and for total shareholders" equity.
