CFA Level I · CFA Level I Exam · Analyzing Balance Sheets
Which item is most likely to appear as a separate column or line in a statement of changes in equity under IFRS?
Total comprehensive income for the period is most likely shown in the statement of changes in equity. The statement reconciles each equity component from opening to closing balance, including comprehensive income, dividends and share transactions with owners.
- ATotal comprehensive income for the periodCorrect
- BAccounts receivable turnover
- COperating cash flow before working capital changes
Explanation
The statement of changes in equity reconciles opening to closing balances of each equity component, showing total comprehensive income, owner contributions, distributions and share transactions. Turnover ratios and operating cash flow are not equity movements.
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