Statement of Changes in Equity under US GAAP

Question 1

Does accumulated other comprehensive income (AOCI) have its own column in the vertical format?

Answer 1

Yes, it has its own column.

Question 2

How many years of Owners’ Equity (OE) must be reported by Securities and Exchange Commission (SEC) registrants?

Answer 2

Three years of OE statements.

Question 3

List the other names for Statement of Changes in Equity.

Answer 3

Statement of Changes in Owners’ Equity, Owners’ Equity Statement, Statement of Shareholders’ Equity, and Statement of Owners’ Equity.

Question 4

In what type of format does the Statement of Changes in Equity appear?

Answer 4

The format is vertical and horizontal.

Question 5

Is the Statement of Changes in Equity required under International Financial Reporting Standards (IFRS)?

Answer 5

Yes, it is required.

Question 6

What do vertical format statements allow accountants to do?

Answer 6

Check accuracy by comparing total Owner’s Equity (OE) computed as (1) the sum of each transaction affecting OE and (2) the sum of individual OE account balances.

Question 7

How are accounts listed in the vertical format?

Answer 7

They are listed in separate columns.