The statement of changes in equity is required:
A) because AASB 101 deals with income and does not define profit.
B) to show profit and loss for the period.
C) to summarise the large number of transactions that take place on the income statement.
D) to provide a reconciliation of opening and closing equity, and also to provide details of the various equity accounts that are impacted by the period's total comprehensive income.

Question

Quizplus · Accepted Answer

The statement of changes in equity provides a reconciliation of opening and closing equity, and also provides details of the various equity accounts that are impacted by the period's total comprehensive income. It is required by AASB 101 to give users of the financial statements information about how equity has changed during the period.

The Statement of Changes in Equity Is Required