Statement of Changes in Equity

There are three options available for displaying data in the Statement of Changes in Equity. This article will take you through those options. To choose the report variation, navigate to your report and add the Statement of Changes in Equity page if it is not already in your report template. Click on the Customise button.

This will bring up all the options for customising the page. Click on the dropdown menu of Report Variation to show:

• Normal
• Equity Type Per Column - Using Movements
• Equity Type Per Column - Using Account Attributes

These options will be discussed in detail below.

Normal

This will display the report as per the layout selection. The layout can be modified by wrapping up, hiding or displaying detail in notes, as is the case with the Profit and Loss, Balance Sheet and Appropriation Statement. For more information on how to modify the layout; see the knowledge article: Reporting - Pages.

Equity Type per Column

The Equity Type per Column modes use the following header accounts to help construct the columns:

Opening Balances/Movements Classification

For each column, the opening balance is worked out using one of two methods based on which option was selected:

Equity Type Per Column - Using Movements

The opening balance for each column will be calculated by calculating the opening balance of each individual account within the header linked to that column. The balance of each account will be treated as 'movements'. This can be seen as a 'transaction' level mode as we look at the types of transactions/journals posted to the accounts to determine what is an opening balance versus what is a movement.

Equity Type Per Column - Using Account Attributes

The opening balance for each column will be calculated by taking the account balance of each account within the header linked to that column which has 'Is Opening Balance' ticked in the account screen. All other accounts will be considered to be 'movements'. This can be seen as an 'account' level mode as we look at the type of each account as a whole to determine what is an opening balance versus what is a movement.

Columns

Columns are built from the following accounts in the Equity Statement:

Capital

The capital column is built from the default Capital system account, noting it may be renamed based on practice preferences and entity type modifications.

If the capital account has only child headers, and no child accounts, then those headers will each become a column. For example:

Will be converted into the following columns:

Reserves

Are treated identically as capital accounts, including the ability to create additional columns by adding sub-headers.

Retained Earnings

This account is a dedicated column. All child accounts will be laid out per the layout options defined when customising the page.

Both current year earnings and other comprehensive income will be consolidated into single rows of movements at the top of this column.

Minority Interest

Will become its own column. All child accounts will be laid out per the layout options defined when customising the page.

Total

The total column will be a simple mathematic addition of each other column.

Editing column titles

Individual column titles will reflect the name of the account that they are based on. This means you can modify them by renaming the account, or by editing the header title in the customise screen:

Movement rows and titles

By default, accounts for each column will be laid out per the layout settings when customising the page.

For example, if you leave the distributions account expanded:

You will see the same account displayed and expaned with it's child accounts in the Statement of Changes in Equity:

For this reason, it is normal to collapse most of the headers inside of retained earnings unless there is particular detail you wish to expand upon in the statement. This means your customised report layout will look like this in most circumstances:

The title for each account in the Statement of Changes in Equity is set to the following by default:

For any given account or custom header, you may customise the Movement Title or Movement Category used to describe movements by modifying the account name, by editing the below two fields in the account edit screen.

The movement Category gives you standard system naming conventions (preference these if they suit your situation), while the movement Title lets you specify any text.

Specifying either of these values has two outcomes:

1) The label for this movement in the Statement of Changes in Equity will be updated

2) If there are other accounts with an identical movement category or title, they will be merged into a single row and shown side by side.

The latter outcome is commonly used to link transfers to/from reserve accounts together in one row.

Apportionments of Other Comprehensive Income

To apportion amounts of Other Comprehensive Income (OCI), you must first ensure such amounts are recognised in the OCI region.

For example, you may post the following journal entry:

This would result in an account that you would link to the equity section as follows:

To allocate some of these amounts of OCI to a reserve, separately recognise the allocation as a 'transfer to a reserve'.

These two accounts would appear in the chart as follows:

For both you would set the movement Category to the following:

Setting the Category to 'Allocation of Other Comprehensive Income' will align the movements from these accounts with Other Comprehensive Income itself, giving you the following result:

Note: If there are discrepancies in movements of equity accounts, you will receive an error: 

To set up the accounts, navigate to the Accounts screen of the entity.

For information on how to customise the page layout and columns for this page type see the corresponding sections in the knowledge article: Reporting - Pages.