Statement of changes in shareholders' equity

It is the financial statement that shows in detail the contributions of the partners and the distribution of the profits obtained in a period, it also shows the difference between the stockholders' equity and the capital stock.

The statement of changes in shareholders' equity is a dynamic financial statement that shows the debit and credit movement of the stockholders' equity accounts of a given company.

It is a basic financial statement showing changes in the shareholders' investment, which reflects the movements made to increase, decrease or update the items of contributed capital. Both authors agree with the definition of financial statements, which shows the constant movements that occur in the company's stockholders' equity.

The notes to the financial statements represent clarifications or explanations of facts or situations, quantifiable or not, that are presented in the movement of the accounts, which should be read together with the financial statements for a correct interpretation.

They also present important information for investors who wish to buy shares of a company through the stock market, since they generally show relevant information to be considered that will determine the behavior of the value of the shares.