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#cfa-level-1 #reading-22-financial-statement-analysis-intro
The statement of changes in equity primarily serves to report changes in the owners’ investment in the business over time.
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3.1.3. Statement of Changes in Equity
The statement of changes in equity, variously called the “statement of changes in owners’ equity” or “statement of changes in shareholders’ equity,” primarily serves to report changes in the owners’ investment in the business over time. The basic components of owners’ equity are paid-in capital and retained earnings. Retained earnings include the cumulative amount of the company’s profits that have been retained in the


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