An example of statement of changes in owner’s equity

Statement of changes in owner’s equity is something you’d prepare rarely, and if required, once a year when you’re preparing your Annual Report, at least. 

An entity’s statement of changes in owner’s equity is a statement which shows movements by components within the equity for the determined period. It takes the brought forward balances and line by line shows the impact of each change to the component of an equity account. As such, a following schedule is formed. Note that all figures are merely for illustrative purposes.

  Share capital Share premium Other reserves Retained earnings Total 
Brought forward balance  2,000 12,000 60,000 15,050 89,050
Contribution in to share capital 500 1,000 0 0 1,500
Profit (loss) for the period 0 0 0 7,050 7,050
Carried forward balance 2,500 13,000 60,000 22,100 97,600


As you can see we had two types of changes happen to our equity accounts – we increased our share capital, share premium and earned a profit that we left to increase the retained earnings. Each change is on its own line item and as such reflects its impact on specific items of equity only.