A primary financial statements (one of the primary statements) of an entity that presents a reconciliation of the beginning and ending balances of its equity (shareholders’ equity/ owners’ equity) during a reporting period. Equity consists of share capital (ordinary shares), share premium (ordinary shares), retained earnings, and accumulated balances in other comprehensive income (OCI). The purpose of this statement is to report the change in respective equity accounts and in total equity for the period.

This statement presents the following items:

• Comprehensive income for the period.
• Issuance of new shares and distributions to owners (dividends)
• Reconciliation of the carrying amount of each component of equity (between beginning and end of a period.)

In practice the statement of changes in equity is prepared in column (columnar) form, where columns show each account of equity as well as total equity.