Statement of Changes in Owner's Equity

Question 1

The Statement of Changes in Owner’s Equity provides Beginning Balances, Changes during the year, and ending balances for what items?

Answer 1

• Stock
• APIC
• RE
• Treasury Stock
• AOCI

Question 2

Is the Statement of Changes in Owner’s equity required under IFRS?

Answer 2

Yes

Question 3

How many years of Owners Equity must be reported for SEC registrants?

Answer 3

3 years

Question 4

What are the 2 most common formats of the Statement of Changes in Owner’s Equity?

Answer 4

Horizontal and Vertical

Question 5

What do vertical format Changes of OE statements allow accountants to do?

Answer 5

Check accuracy by comparing total OE computed as the sum of each transaction affecting OE and the sum of individual OE balances

Question 6

What is the presentation of the vertical format of the Changes in OE>

Answer 6

• Each column reconciles the beginning and ending balances

- Each account (RE, APIC, etc.) has their own column

Question 7

What are the other names for Statement of Changes in Equity?

Answer 7

• Statement of changes in Owner’s Equity
• Owner’s Equity Statement
• Statement of Shareholders’ Equity
• Statement of Owners’ Equity

Question 8

Is Statement of Changes in Equity a required Financial Statement for GAAP?

Answer 8

No