Statement of changes in equity

1. Format of statement of changes in equity is neither provided in Schedule III nor in the existing accounting standards.
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2. This concept is from IFRS wherein as per International Accounting Standard 1 (Presentation of Financial Statements), preparation of statement of changes in equity is required.
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2. As per sec. 2(40) of the Companies Act, 2013, financial statement includes, statement of changes in equity, if applicable.
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3. The words ‘if applicable’ implies that the same will be applicable under Ind-AS only due to the following reasons:
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i) ICAI has issued exposure draft for revision of existing AS-1 and the objective of revision states that, “revision of the existing AS 1 does not contain various requirements included in Ind AS 1 such as the concepts of...statement of changes in equity...”. Refer to pg. 25 of this -> link
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ii) Para 10 of Ind-AS 1 (Presentation of Financial Statements), states that financial statements will include statement of change in equity.
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iii) Para 106 of Ind-AS 1 mentions the information to be presented in such statement.
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4. MCA has notified Ind-AS [Companies (Indian Accounting Standards) Rules 2015], w.e.f. 01.04.2015, applicable to certain class of entities. [Download the standards]
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5. Snapshot of Ind-AS Roadmap (Ind-AS Background Material by ICAI Committee)
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This is nothing but, Equity + Reserves 

If there is a change in IFRS and Local GAAP, these items will be shown in change in equity and we need to address these issues in deferred tax.

I you need further explanation, you can call me 09994586481.

B Bala Pullaiah