In which of the following way is the presentation of changes in shareholders' equity account treated under IFRS?
A)Changes in all equity accounts are presented in a separate statement called "statement of changes in equity".
B)Changes only in retained earnings are presented in the statement of retained earnings".
C)Changes in all equity accounts are presented in the financial notes.
D)Changes only in retained earnings are presented in a separate statement called "statement of changes in equity".

Question

Quizplus · Accepted Answer

Under IFRS, changes in all equity accounts including retained earnings are presented in a separate statement called "statement of changes in equity". This statement shows the movements of each component of equity (such as share capital, share premium, retained earnings, etc.) over a period of time, usually a year. It helps users of financial statements understand how the equity section of the balance sheet has changed over time.

In Which of the Following Way Is the Presentation of Changes