Statement of Changes in Equity (SOCE) & Statement of Other Comprehensive Income (SOCI) Flashcards
broadly speaking, what should the SOCE include?
- total comprehensive income
- revaluation/restatement
- movement of each component of equity
what’s included in the SOCE title?
- company name (ABC Plc)
- financial statement (SOCE)
- date (31/12/2024)
- amount (in thousands GBP)
what do the columns in the SOCE include?
- share capital
- share premium
- retained earnings
- revaluation surplus (PPE)
- total equity attributable to the owners
what do the rows in the SOCE include?
- beginning balances
- changes in accounting policy (revaluations)
- restated balance
- dividends paid
- profit/loss
- other comprehensive income
- total changes in equity for the year
- closing balances
what is the accounting treatment for ‘issue of new shares at a premium’?
share capital and share premium column portray increases
what is the accounting treatment for ‘payment of dividends’?
amount is deducted from dividends row and retained earnings column
what is the accounting treatment for ‘net profit of xxx amount’?
retained earnings column and profit/loss row is increased by xxx amount
what is the accounting treatment for ‘downward revaluation of PPE by xxx amount’?
decrease of xxx amount in other comprehensive income row and revaluation surplus column
examples of other comprehensive income?
FUPIE acronym
- F oreign currency translation gains or losses
- U nrealised holding gains or losses on available-for-sale securities
- P ension adjustments
- I nstrument specific credit risk
- E ffective portion of cash flow hedges
foreign currency translation gains or losses?
gains or losses derived from the translation of currencies
unrealised holding gains or losses on available-for-sale securities?
realised gain or loss = gain or loss derived from an asset that has been sold
unrealised gain or loss = hypothetical gain or loss from an asset that hasn’t been sold
pension adjustments?
when an adjustment has been made to a pension plan
e.g., gain/loss from change in funded status, change in prior service cost
instrument-specific credit risk?
the recognition of an increased or decreased credit rating
effective portion of cash flow hedges?
effective cash flow hedges go on the OCI
ineffective portion of cash flow hedge goes to net income
total comprehensive income = ?
net income + other comprehensive income
