ICAEW AF · Chapter 13 · Question 8 of 12
Which of the following items is presented in a company's statement of changes in equity, rather than in its statement of profit or loss?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) An issue of ordinary shares for cash at a premium
Explanation
The statement of changes in equity shows transactions with owners in their capacity as owners, such as share issues and dividends, together with total comprehensive income for the year. A share issue increases share capital and share premium and is not income. Loan note interest is a finance cost, income tax is the tax expense and depreciation is an operating expense, so all three are charged in the statement of profit or loss.
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