Lesson 8 of 9
The balance sheet provides a broad picture of the company’s financial position along with the details about its assets and liabilities. However, if an analyst wants to take a close look at the shareholder’s activities, he will use the statement of changes in shareholder’s equity.
The statement of changes in shareholder’s equity provides a summary changes in balance sheet equity accounts from one accounting period to the next. This statement is an important link between the balance sheet and the income statement
Presented below is a sample statement of changes in shareholder’s equity.
