Question
Which item does NOT appear in the statement of changes in equity?
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
IAS 1 and IAS 32 — presentation of equity
Split every share issue between the nominal or par amount and the excess received. The nominal amount goes to share capital and the excess to share premium; these are presented separately and are not interchangeable.
Common mistakes
- Posting the entire proceeds of an issue to share capital and omitting share premium.
- Treating preference shares that carry a mandatory redemption as equity when their substance is a liability.
- Recording share issue costs as an expense rather than against equity.
Further readingPreparing a balance sheet step by step