Statement of Changes in Equity

Question 1

What is the component of shareholder’s equity?

Answer 1

Capital Contributed by Owners (common stock)
*Shares authorized under articles of corporation
*Shares issued (sold) to investors
*Shares outstanding: issued shares minus treasury shares

Preferred shares
*Preferential rights to dividends and assets vs. common stock

Treasure shares
*company repurchases its own shares

Retained Earnings
*Cumulative earnings not paid a dividends

AOCI
*Cumulative OCI

Noncontrolling (minority) interest
*Equity portion of a subsidiary owned by others