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Commission Regulation (EC) No
2238/2004 of 29 December 2004 amending Regulation (EC) No 1725/2003
adopting certain international accounting standards in accordance
with Regulation (EC) No 1606/2002 of the European Parliament and of
the Council, as regards IASs IFRS 1, IASs Nos 1 to 10, 12 to 17, 19
to 24, 27 to 38, 40 and 41 and SIC Nos 1 to 7, 11 to 14, 18 to 27
and 30 to 33
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Statement of Changes
in Equity
96. An entity shall
present a statement of changes in equity showing on the
face of the statement:
(a) profit or loss
for the period;
(b) each item of
income and expense for the period that, as required
by other Standards or by Interpretations, is recognised
directly in equity, and the total of these items;
(c) total income and
expense for the period (calculated as the sum of
(a) and (b)), showing separately the total amounts
attributable
to equity holders of the parent and to minority interest;
and
(d) for each
component of equity, the effects of changes in accounting
policies and corrections of errors recognised in
accordance
with IAS 8.
97. An entity shall
also present, either on the face of the statement of changes
in equity or in the notes:
(a) the amounts of
transactions with equity holders acting in their
capacity as equity holders, showing separately distributions
to equity holders;
(b) the balance of
retained earnings (ie accumulated profit or loss)
at the beginning of the period and at the balance sheet
date, and the changes during the period; and
(c) a reconciliation
between the carrying amount of each class of contributed
equity and each reserve at the beginning and the
end
of the period, separately disclosing each change.
98. Changes in an
entity’s equity between two balance sheet dates reflect the
increase or decrease in its net assets during the period.
Except for changes resulting from transactions with equity
holders acting in their capacity as equity holders (such as
equity contributions, reacquisitions of the entity’s own
equity instruments and dividends) and transaction costs
directly related to such transactions, the overall change in
equity during a period represents the total amount of income
and expenses, including gains and losses, generated by the
entity’s activities during that period (whether those items
of income and expenses are recognised in profit or loss or
directly as changes in equity).
99. This Standard
requires all items of income and expense recognised in a
period to be included in profit or loss unless another
Standard or an Interpretation requires otherwise. Other
Standards require some gains and losses (such as revaluation
increases and decreases, particular foreign exchange
differences, gains or losses on remeasuring available-for-sale
financial assets, and related amounts of current tax and
deferred tax) to be recognised directly as changes in equity.
Because it is important to consider all items of income and
expense in assessing changes in an entity’s financial
position between two balance sheet dates, this Standard
requires the presentation of a statement of changes in equity
that highlights an entity’s total income and expenses,
including those that are recognised directly in equity.
100. IAS 8 requires
retrospective adjustments to effect changes in accounting
policies, to the extent practicable, except when the
transitional provisions in another Standard or an
Interpretation require otherwise. IAS 8 also requires that
restatements to correct errors are made retrospectively, to
the extent practicable. Retrospective adjustments and
retrospective restatements are made to the balance of retained
earnings, except when a Standard or an Interpretation requires
retrospective adjustment of another component of equity.
Paragraph 96(d) requires disclosure in the statement of
changes in equity of the total adjustment to each component of
equity resulting, separately, from changes in accounting
policies and from corrections of errors. These adjustments are
disclosed for each prior period and the beginning of the
period.
101. The
requirements in paragraphs 96 and 97 may be met in various
ways. One example is a columnar format that reconciles the
opening and closing balances of each element within equity. An
alternative is to present only the items set out in paragraph
96 in the statement of changes in equity. Under this approach,
the items described in paragraph 97 are shown in the notes.
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