How many of these are true statements concerning the statement of changes in equity?
$\bullet$It provides a link between the statement of profit or loss and other comprehensive income and the statement of financial position.
$\bullet$It provides a link between the statement of profit or loss and other comprehensive income and the statement of cash flows.
$\bullet$It is only required to be prepared by disclosing entities.
A) 0
B) 1
C) 2
D) 3

Question

Quizplus · Accepted Answer

The first statement is true, as the statement of changes in equity summarizes the changes in equity between two periods and provides a link between the statement of profit or loss and other comprehensive income and the statement of financial position.

The second statement is not true, as the statement of changes in equity does not provide a direct link with the statement of cash flows.

The third statement is not true, as the statement of changes in equity is required to be prepared by all entities, not just disclosing entities.

Therefore, only statement 1 is true, and the answer is B.

How Many of These Are True Statements Concerning the Statement ∙\bullet∙

How Many of These Are True Statements Concerning the Statement $\bullet$