What is Statement of Changes in Equity (Format)?
The statement of changes in equity is a primary financial statement under IAS 1 that presents the movement in each component of equity (share capital, share premium, reserves, retained earnings, OCI, non-controlling interest) between the start and end of the reporting period.
How It Works
- One column per equity component plus a total column.
- Rows: opening balance, profit, OCI, transactions with owners, transfers between reserves, closing balance.
- Reconciles opening and closing equity totals.
- Required disclosure: any retrospective restatements or accounting policy changes.
Saudi Context
Saudi joint-stock and listed companies prepare a detailed statement of changes in equity disclosing the legal reserve transfer (10% of net profit until reaching 30% of capital), dividends paid (CMA-approved for listed companies), and treasury share transactions (subject to the 10% issued capital cap).
Example
A Saudi company opens with SAR 100,000,000 share capital, SAR 8,000,000 legal reserve, SAR 25,000,000 retained earnings. During the year: profit SAR 12,000,000, transfer to legal reserve SAR 1,200,000, dividends paid SAR 5,000,000. Closing retained earnings = 25 + 12 – 1.2 – 5 = SAR 30,800,000.