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CMA Intermediate · Corporate Accounting and Auditing · Presentation of Financial Statements (Ind AS 1)

Which of the following is a minimum item that Ind AS 1 requires to be shown in the reconciliation of the opening and closing carrying amount of each component of equity in the Statement of Changes in Equity?

Changes from transactions with owners in their capacity as owners, with contributions and distributions shown separately, must be disclosed in the reconciliation of each equity component. Ind AS 1 paragraph 106(d) lists this along with profit or loss and other comprehensive income as minimum items.

  1. AChanges resulting from transactions with owners in their capacity as owners, showing contributions and distributions separatelyCorrect
  2. BChanges in the market price of the entity's shares during the period
  3. CForecast profit for the next reporting period
  4. DRemuneration paid to the statutory auditor

Explanation

Paragraph 106(d) requires a reconciliation for each component of equity, disclosing at a minimum changes from profit or loss, other comprehensive income, and transactions with owners in their capacity as owners (contributions and distributions shown separately). Share price movements, forecasts and auditor remuneration are not equity reconciling items.

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