Statement of Changes in EquityStatement of Changes in Equity

Statement of Changes in Equity

96. An entity shall present a statement of changes in equity showing on the face of the statement:

(a) profit or loss for the period;

(b) each item of income and expense for the period that, as required by other Australian Accounting Standards, is recognised directly in equity, and the total of these items;

(c) total income and expense for the period (calculated as the sum of (a) and (b)), showing separately the total amounts attributable to equity holders of the parent and to minority interest; and

(d) for each component of equity, the effects of changes in accounting policies and corrections of errors recognised in accordance with AASB 108.

A statement of changes in equity that comprises only these items shall be titled a statement of recognised income and expense.

97. An entity shall also present, either on the face of the statement of changes in equity or in the notes:

(a) the amounts of transactions with equity holders acting in their capacity as equity holders, showing separately distributions to equity holders;

(b) the balance of retained earnings (i.e. accumulated profit or loss) at the beginning of the period and at the reporting date, and the changes during the period; and

(c) a reconciliation between the carrying amount of each class of contributed equity and each reserve at the beginning and the end of the period, separately disclosing each change.

98. Changes in an entity’s equity between two reporting dates reflect the increase or decrease in its net assets during the period. Except for changes resulting from transactions with equity holders acting in their capacity as equity holders (such as equity contributions, reacquisitions of the entity’s own equity instruments and dividends) and transaction costs directly related to such transactions, the overall change in equity during a period represents the total amount of income and expenses, including gains and losses, generated by the entity’s activities during that period (whether those items of income and expenses are recognised in profit or loss or directly as changes in equity).

99. This Standard requires all items of income and expense recognised in a period to be included in profit or loss unless another Australian Accounting Standard requires otherwise. Other Australian Accounting Standards require some gains and losses (such as revaluation increases and decreases, particular foreign exchange differences, gains or losses on remeasuring available‑for‑sale financial assets, and related amounts of current tax and deferred tax) to be recognised directly as changes in equity. Because it is important to consider all items of income and expense in assessing changes in an entity’s financial position between two reporting dates, this Standard requires the presentation of a statement of changes in equity that highlights an entity’s total income and expenses, including those that are recognised directly in equity.