There isn’t much happening on equity accounts, if don’t include the main account that impacts total equity daily. Yes, the capital, the share premium, other reserves are as they are with very rarely changes happening to them. However, something to watch out for regardless is the level of those accounts and total equity just as well. 

It’s one thing to ensure that your company’s capital meets the minimum requirements and that your reserves are set for purposes mentioned in your local legislation. It’s just as important to ensure that equity accounts you’re not allowed to make payments out of, stay as they are and so on.

However, it’s another matter to be on the lookout for retained earnings and result for the period impacting your total equity. No doubt your local legislation sets requirements for the amount of total equity, i.e. it’s not allowed to have it be negative or less than the share capital for an example. It’s important to keep track on the health of your company’s equity.

You wouldn’t want to find out that you could have done something against the situation before it’s too late. Hence, if you’re making losses, ensure that your equity can take it. If it’s only temporary there might not be a problem.