What is statement of changes in stockholders’ equity?

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I know what the balance sheet and the income statement shows but I don’t understand what exactly the statement of financial position shows and what it’s purpose is.

1 Answer

score 0 · Answer 1 · 2013-04-14T23:35:59+00:00

It’s one of the statements that are included in the financial statements. The statement of changes in equity shows any changes (new issues) in the equity, any dividends paid and any profits or losses created during the year. The statement of changes in equity is basically a reconciliation of the equity section of the balance sheet (in a more detailed view).