The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

6.2 CONTEXT OF THE STATEMENT OF CHANGES IN EQUITY

6.2.1 Whether a Statement is Required

6.2.1.1 Linkage with the Elements of the Financial Statements

The U.S. Concepts consider investments by and distributions to owners during the period among the elements of the financial statements. Therefore, the U.S. Concepts require a statement to that effect.1 Conversely, the IASB Framework has no similar element of the financial statements, and does not deal with the statement of changes in equity. It instead refers to a generic concept of changes in financial position that mainly stands for changes in cash flows, changes in funds, or changes in financial resources in general.2 The new common conceptual framework keeps the reference to changes in economic resources and claims not resulting from financial performance.3

6.2.1.2 From Elements to Statements

However, the U.S. Concepts are not prescriptive on the form of such a statement of investments by and distributions to owners. In fact, as Exhibit 2-6 illustrates, U.S. practice has a plurality of ways of reporting information on changes in equity, alone or in combination with net income and retained earnings. Paragraph I.A.1 above explains that the U.S. Concepts follow the approach of defining the content that a set of financial statements must represent rather than prescribing specific statements.

6.2.1.3 When a Statement is Optional and When Mandatory

Disconnecting from the IASB Framework, IAS 1 is very clear in requiring a statement of ...