Statement of Changes in Stockholders equity

Question 1

What is the statement of Changes in Stockholders equity and why is it considered one of the core financial statement

Answer 1

-The statement of Changes in Stockholders equity, also known as the Statement of Equity or Statement of Owners Equity is one of the core financial statements
- It provides a detailed overview of the changes in a company’s equity over a specific period.
- Useful for investors and analysts to understand movements in the equity section of the balance sheet
- Presents reconciliation of beginning and ending balance of various components.

Question 2

What Columns are generally included in the format of the Statement of Changes in Stockholders Equity, and what information do they provide?

Answer 2

Statement of Changes in Stockholders Equity presents a reconciliation between the beginning and ending balance of various components of stockholders equity arising from new capital contribution, dividends, net income/loss, and various other elements.
- Preferred Stock
-Common Stock
- Additional Paid-in Capital
- Retained Earnings
- Accumulated OCI