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[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding_tablet=”0px||0px|” custom_padding_last_edited=”on|desktop” prev_background_color=”#ffffff” next_background_color=”#000000″][et_pb_row][et_pb_column type=”4_4″][et_pb_toggle admin_label=”Index” _builder_version=”3.0.106″ title=”Index” open=”off”]Contents
6.2 Small Companies Exemption.
6.2.1 Extract from FRS102: Section 6.1A..
6.3 Statement of changes in equity.
6.3.1 Extract from FRS102: Section 6.2-6.3A.
6.3.2.1.1 Specific items to be included in the Statement of changes in Equity.
6.3.2.1.2 Where to show the breakdown of the movement of other comprehensive income.
6.3.2.1.3 The requirements to provide a description of each equity reserve and where to include it.
6.3.2.1.4 The get out of from presenting a statement of changes in Equity.
6.3.2.1.5 Practical illustration of the requirements for a statement of changes in Equity.
6.3.2.1.5.1 Consolidated Statement of Changes in Equity.
6.3.2.1.5.1.1 Description of reserves in equity and the reason for movement.
6.3.2.1.5.2 Individual entity Statement of Changes in Equity.
6.3.2.1.5.2.1 Description of reserves in equity and the reason for movements.
6.4 Statement of income and retained earnings.
6.4.1 Extract from FRS102: Section 6.4-6.5.
6.4.2.1 Statement of Income and retained earnings defined.
6.4.2.2 When can the statement of income and retained earnings be adopted.
6.4.2.3 Illustrations practically of the Statement of income and retained earnings.
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6.4.1 Extract from FRS102: Section 6.4-6.5
6.4 The statement of income and retained earnings presents an entity’s profit or loss and changes in retained earnings for a reporting period.
Paragraph 3.18 permits an entity to present a statement of income and retained earnings in place of a statement of comprehensive income and a statement of changes in equity if the only changes to its equity during the periods for which financial statements are presented arise from profit or loss, payment of dividends, corrections of prior period material errors, and changes in accounting policy.
6.5 An entity shall present, in the statement of income and retained earnings, the following items in addition to the information required by Section 5 Statement of Comprehensive
Income and Income Statement:
(a) retained earnings at the beginning of the reporting period;
(b) dividends declared and paid or payable during the period;
(c) restatements of retained earnings for corrections of prior period material errors;
(d) restatements of retained earnings for changes in accounting policy; and
(e) retained earnings at the end of the reporting period.
6.4.2 OmniPro comment
6.4.2.1 Statement of Income and retained earnings defined
Section 6.4 of FRS102 states that the Statement of income and retained earnings presents an entity’s profit or loss and changes in retained earnings for a period.
6.4.2.2 When can the statement of income and retained earnings be adopted
As per Section 6.4 of FRS102 the statement of income and retained earnings can be provided as opposed to the statement of changes in equity where the only transactions during the periods presented are:
- profit or loss;
- payment of dividends;
- corrections of prior period material errors; and
- changes in accounting policy.
In addition, Section 6.5 of FRS102 requires the following to be disclosed in the periods
- the opening retained earnings.
- dividends paid and declared.
- dividends declared but not paid.
- transfers between reserves to and from retained earnings.
- Restatements to retained earnings due to prior period errors and changes in accounting policies.
- Closing retained earnings.
6.4.2.3 Illustrations practically of the Statement of income and retained earnings
See illustration of requirement of Section 6.4 to 6.5 of FRS102 in example 4. Note Company law requires disclosure of shareholders funds for each period presented so if the full statement of changes in equity is not provided the movement in shareholders funds’ reserve will need to be included in the financial statements.
Example 4: Statement of income and retained earnings
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Examples
Example 1: Consolidated Statement of Change in Equity
Example 2: Statement of Change in Equity – Non-Group Company.
Example3: Prior year adjustments or change in policy reflected in Statement of Changes in Equity.
Example 4: Statement of income and retained earnings.
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