Statement of Changes in Equity

The statement of changes in equity (“statement of changes in owners’ equity” or “statement of changes in shareholders’ equity”) primarily serves to report changes in the owners’ investment in the business over time.

The basic components: paid-in capital and retained earnings.

Retained earnings include the cumulative amount of the company’s profits that have been retained in the company.

In addition, non-controlling or minority interests and reserves that represent accumulated other comprehensive income items are included in equity. The latter items may be shown separately or included in retained earnings.

The statement of changes in equity is organized to present, for each component of equity, the beginning balance, any increases during the period, any decreases during the period, and the ending balance.

For paid-in capital,

an increase: a new issuance of equity

a decrease: a repurchase of previously issued stock

For retained earnings,

an increase: income

a decrease: dividend payment

Explanatory notes on equity are included in the notes to the consolidated financial statements.