Accounting
Statement of Changes in Equity
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The statement of changes in equity tracks how owner's equity changed during a specific period. It bridges opening and closing equity balances.
It includes items like net income, dividends paid, share issuances, and comprehensive income. For example, if a company started with $1M in equity, earned $200K in profit, and paid $50K in dividends, closing equity is $1.15M.
This statement gives investors a clear picture of what drives changes in ownership value — growth through profits or shrinkage through losses and payouts.