AFM291 Chapter Notes - Chapter 13: Authorised Capital, Comprehensive Income, Retained Earnings
28 Jun 2018
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Dividends were not paid on either class of preferred shares in 2018 but only A shares are cumulative so
both years must be paid to A and only current year’s entitlement needs to be paid to B.
Dividends were paid on A in 2018, but not on B; no dividends in arrears on series A
3.
Statement of Changes in Equity
E. Much more comprehensive than statement of retained earnings
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The statement of changes in equity provides information about the changes that took place
during the period in all equity accounts.
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For each component of equity (e.g., contributed capital), a reconciliation of opening and
closing balances, separately disclosing changes resulting from profit or loss; OCI; and
capital transactions
o
The total comprehensive income for the period
o
The effect of retrospective changes in accounting policies
o
In the statement, should include:
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The statement of changes in equity aims to achieve this objective by identifying the reasons for
the change in total equity and its components from the beginning to the end of the period
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Contributed capital: the amount of funds provided by owners, net of repayments to the
owners or repurchases of ownership units (shares)
o
Retained earnings
: the amount of cumulative profits (or losses) recognized through the
Three components of equity to consider
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AFM 391 Page 11
Document Summary
Dividends were not paid on either class of preferred shares in 2018 but only a shares are cumulative so both years must be paid to a and only current year"s entitlement needs to be paid to b. Dividends were paid on a in 2018, but not on b; no dividends in arrears on series a. Much more comprehensive than statement of retained earnings. The statement of changes in equity provides information about the changes that took place during the period in all equity accounts. For each component of equity (e. g. , contributed capital), a reconciliation of opening and closing balances, separately disclosing changes resulting from profit or loss; oci; and capital transactions. The effect of retrospective changes in accounting policies. The statement of changes in equity aims to achieve this objective by identifying the reasons for the change in total equity and its components from the beginning to the end of the period o o o.
