Gains and losses on available for sale securities: i.e.Gains and losses on cash flow hedge: unrealized portion of change in fair value.Retained earnings: accumulated earnings since the start of the company net of dividends paid or any restatement adjustments.It is a contra-account to the paid-up capital. Treasury stock, which represents the value of shares repurchased by the company.Additional paid-up capital (also called share premium), which is the excess of paid-up capital over the legal capital.Īdditional paid-up capital = (issue price – stated price) × total number of shares issued.Common stock, which represents the legal capital of the company and it equals the product of shares issued and the stated value of each share.Typically, a statement of shareholders equity summaries changes in the following equity components: changes that result from changes in total comprehensive income, such as net income for the period, revaluation of fixed assets, changes in fair value of certain investments, etc.Ĭomponents of changes in shareholders equity.changes that originate from transactions with shareholders such as issue of new shares, payment of dividends, etc.There are two types of changes in shareholders’ equity: It reconciles the opening balances of equity accounts with their closing balances. A statement of changes in shareholders equity presents a summary of the changes in shareholders’ equity accounts over the reporting period.
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