A statement of change in equity (also referred to as statement of retained earnings) is a business' financial statement that measures the changes in owners’ equity throughout a specific accounting period. It covers the following elements:
- Net profit or loss.
- Dividend payments.
- Equity withdrawals.
- Effect of accounting policies changes.
- Effects of prior accounting period corrections.
- Accumulated reserves and retained earnings.
[Last updated in August of 2021 by the Wex Definitions Team]