Financial Statements - Lecture 6 - Statement of Changes in Equity - IFRS

[@Ownyourlifeekolifestyle]

Dear, Else Grech, thank you for the great concise videos, they are incredible helpful for quick review before the test, however they are amazingly perfect for learning from the beginning. These series of short lectures are prove that knowledge is a privilege for those who wants to give credit for their education.

[@Tgoalkeeper]

Very clear and helped me understand much better, thank you! Will be watching more of your videos in the future

[@udimagingvideos7206]

Else your lecture was timely and God sent it really appreciate it

[@elsegrech]

No problem - glad it helped!

[@aishachatha6796]

I love how you break things down its so easy to understand

[@elsegrech]

Really glad you like it!

[@idealbusinessresourcescons1990]

This is Brilliant ,i struggled for a Long time to understand the SOCE. Now I understand.Thanks

[@elsegrech]

Glad it helped!

[@amralsabban3533]

Thanks so much may God bless you - love from Saudi Arabia

[@elsegrech]

Happy I can help!

[@kanefinlayson534]

Thank you so much! Well explained and has helped me in my assignment.

[@elsegrech]

You are very welcome Kane!

[@chrischen8044]

Hi Else, what if the company has preferred shares, could you please talk about where should the company put it, in which financial statements? Should the company also put a column besides common shares in the statement of changes in equity? Where else should the company put in? Thank you.

[@elsegrech]

Correct. There would be a column infront of common shares for perferred shares. It would also be taken to the statement of financial position (balance sheet), under equity, as the 1st line item. Hope that helps. Else

[@chrischen8044]

@@elsegrech Hi Else, thanks for replying, great help.

[@yogeshshankariya2841]

please make video as all spectators are from non finance background and with detail explanation. and please explain in slow speed. and yes thank you for making this video.

[@elsegrech]

Hi Yogesh. Are you asking for another video on the Statement of Changes in Financial Position? You asked for a detailed explanation but I'm a bit confused as that is what I have tried to do in this video. If you can clarify that would be great! Also, I have another series of videos that solve a problem and complete a statement of changes in equity...perhaps that one would help? Here's the LINK to that series of videos: kzbin.info/www/bejne/gIewcoxqpMdrndU Please let me know and thanks! Else

[@joetabbah6825]

Amazing video! Saved me for my exam, thank you

[@elsegrech]

Glad I could help Joe!

[@michalmarcinek52]

Hi, Balance for Change in Equity "Begining of the Year" I think should be 278,800 but you have it at 278,400? Not sure I'm also not sure why profit for the year was 17,100 but then changed in the total colum to 17,000.

[@AnnaKim-l9w]

Thank you for the video! It helped me a lot. A little question: why did you wrote ending balance for common shares as 154,600, rather than 155,000? And in total column you wrote 17,000 instead of 17,100

[@elsegrech]

I am so sorry Anna!!! I have never even noticed those errors. Total common shares should absolutely be $155,000 (148,400 + 11,600 - 5,000) and you are correct in that I wrote $17,000 in the total column instead of $17,100, which is the correct amount. My apologies for these errors and I will try and fix them and post a new video!!

[@AnnaKim-l9w]

@@elsegrech oh no no no, please do not apologize 🤗🤗 that mistake didn't confused me at all! Thank you again for video!

[@elsegrech]

@@AnnaKim-l9w You are very welcome!

[@drashady]

well your videos earned me a 100% for my first finance assignment. TYTYTY

[@elsegrech]

Excellent Sandra! Thanks for letting me know.

[@nirmanonline]

Thanks for these great video lessons. I feel the content flow is little bit of fast. Please make future videos in slower phase which is more easy to students to grasp. Good luck.

[@elsegrech]

Thanks Nirman....I do try to slow it down and will keep striving to improve. Thanks for your feedback!

[@joelmokoena3292]

I am really grateful for you,you really did help. Would you mind having to go through question with adjustments? But content wise you are just an angel to be kissed.

[@elsegrech]

Thanks Joel. Regarding your question - when you say go through a question with adjustments do you mean solve an adjusting entry question and add it to that playlist? If you can clarify that would be great since I am working hard this summer to add a lot more videos. Let me know and thanks!

[@joelmokoena3292]

Yes that is what I meant.

[@elsegrech]

Got it. I will be creating adjusting entry examples this summer! Thanks for the input.

[@googledefault1050]

does your common shares in the video includes share premiums? :D TY :)

[@elsegrech]

No they do not. Hope that helps! Else

[@hiimkxiv]

This helped me understand the topic thankyou

[@elsegrech]

You are very very welcome!

[@JohnWick-xy7nz]

Hi Else, do you have a video about presentation on Statement of Changes in Equity and Other Comprehensive income for revaluation gain then subsequently revaluation loss? I am not sure how to deal with impairment after previous revaluation gain on SOCIE and OCI😰thanks for your help

[@elsegrech]

I am so sorry but I do not. I assume you mean the revaluation model for long lived assets under IFRS? If that is the case then I can explain it at least. If there is a balance in the Revaluation Surplus Account, then a subsequent revaluation loss is debited to the Revaluation Surplus Account until that account is at zero. After that the remaining revaluation loss goes against the P&L. Example: Revaluation Surplus = $60,000 credit (as this account can only be a credit or zero but never a debit). Revaluation for this year = $70,000 loss on revaluation. Entry: Debit Revaluation Surplus for $60,000 (balance now zero) and debit Loss on Revaluation (P&L) for $10,000. On the Statement of Changes in Equity it would simply show up as a Revaluation Loss of $60,000 so the ending balance in Accumulated OCI would now be zero. All of this would be net of taxes, which I don't reflect in my example. Hope that helps. Else

[@JohnWick-xy7nz]

Else Grech Accounting Thank you for you detailed explanation, you are fantastic! So on the Other Comprehensible Income statement, following you example, when it was $60k gain, the $60k will be shown under “gain on non-current asset revaluation”. After it was subsequently revalued with a $70k loss, what number do I show on the OCI? Is it -60 ?

[@elsegrech]

@@JohnWick-xy7nz Yes! Your Net Income calculation would include the $10,000 loss on revaluation (P&L) and, under Net Income, you would show a Loss on Revaluation of -60,000 to calculate Comprehensive Income.

[@AlieuFatty]

Thank you so much!

[@elsegrech]

You are very welcome!

[@stephanszitha8844]

Ma'am, what's the difference between Statement of Financial Position and Balance Sheet, the difference between Retained earnings Statement and the Statement of Changes and Equity?

[@elsegrech]

The statement of financial position and the balance sheet are the same thing. ASPE uses the term balance sheet but IFRS recommends the use of the title statement of financial position....but they are the same thing. Statement of retained earnings covers the changes in retained earnings ONLY and is only permitted under ASPE. The statement of changes in equity is required by IFRS and it shows the changes in ALL equity accounts, including shares and other comprehensive income. Hope that helps! Else

[@AshGeo]

Thanks a lot ma'am

[@elsegrech]

You are very welcome!

[@zandg6477]

thank you for this video!

[@elsegrech]

You are very very welcome!

[@alltimechiller]

Slow down! Speaking way too fast.

[@elsegrech]

Sorry about that! Click on the "gear" icon and you can slow it down to the level that works for you. I am trying to fix that in subsequent videos.

[@anevaluator6606]

Wow thanks a lot

[@elsegrech]

:) You are very welcome!

[@fidelsoriano8415]

how about the reserve and the treasury shares???

[@elsegrech]

Sorry but not concepts that are covered in intro financial accounting! Thanks for watching.

[@sushi4542]

Watch at 0.75 speed

[@elsegrech]

Sigh....yes...please do and my apologies Camila!

[@sushi4542]

No need to apologize! Your explanation was GREAT and seriously helped me, just need to talk a little slower to let the information sink is for us listeners haha. Keep up the great work:) New subscriber here!

[@muhannadals3349]

I love you

[@elsegrech]

LOL!!!! Thanks!!!!!

[@ziadelhawashy9324]

[@SpiridonSpiridonovich]

Too fast for me but thank you!

[@makadriane9654]

i understood, it was helpful to me thank you . but you're speaking too fast! some of us don t have English as a first language!

[@elsegrech]

Sorry about that. Note that you have the option of slowing it down using the settings on KZbin.

[@TheRyanos]

The most annoying financial statement out of all. The most complex one too.

[@elsegrech]

I agree...but once you have done a few of them they actually are pretty simple!

[@nahuzaeem3690]

really difficult to understand bc u r speaking v fast

[@elsegrech]

I know and apologize. Please consider using the settings on the video to slow me down.

[@apoorrvgupta1658]

Factual but Too Staid Narration

[@elsegrech]

Sorry you're unhappy with the way I narrate but there are a lot of other videos from other providers so all good! Take care. Else