topic 21 statement of changes in equity

• Prepared to show the equity section of a SOFP
• Layout of a SOCIE:

  • columns: ordinary shares, share premium, revaluation reserve, retained earnings and total
  • row: bal bd, shares issued, profit for the year, dividends and bal cd
• Retained earnings: bal bd + profit for the year - dividends paid = bal cd
• Interim dividends:

  • interim financial statements are half yearly prepared statements and directors will then propose and then pay interim dividends based on the first half year's results
  • dividends paid in SOCIE usually consist of: the final dividend for the previous year + the interim dividend for the current year