Section A

Which TWO of the following are required to be disclosed in the Statement of Changes in Equity?

Answer options:

Dividends paid during the year.

Dividends proposed after the year-end.

Total comprehensive income for the year.

Proceeds from the sale of non-current assets.

How to approach this question

Recall the components of the Statement of Changes in Equity (SOCIE). It shows movements in equity accounts: Share Capital, Share Premium, Retained Earnings, etc. Movements include profit/loss, dividends paid, and share issues.

Full Answer

The Statement of Changes in Equity (SOCIE) reconciles opening and closing equity balances. It must include total comprehensive income for the year, the effects of retrospective application/restatement, and transactions with owners in their capacity as owners (such as dividends paid and share issues). Dividends proposed after year-end are non-adjusting events and only disclosed in the notes.

Common mistakes

Including proposed dividends in the SOCIE.

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Practice the full ACCA FA — Financial Accounting Practice Exam 6

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