Statement of change in equity

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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]