The Statement of Changes in Equity Is Required

question 36

Multiple Choice

The statement of changes in equity is required.

• A) Because AASB 101 deals with income and does not define profit.
• B) To show profit and loss for the period.
• C) To summarise the large number of transactions that take place on the income statement.
• D) To show each item of income and expense for the period that is recognised directly in equity as required by other AASB standards.
• E) To provide a reconciliation of opening and closing equity, and also to provide details of the various equity accounts that are impacted by the period's total comprehensive income.

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Definitions:

Healthy Competition

The idea that competition can promote innovation, efficiency, and improvement when it is conducted in a fair and positive manner.

Conflict Theorists

are scholars who believe that society is in a state of perpetual conflict due to competition for limited resources, contributing to social inequality.

Stability

The state or quality of being resistant to change, especially sudden change or deterioration, maintaining equilibrium or remaining unchanged.

Conservative Reaction

A response aiming to preserve traditional structures, values, and practices in the face of perceived changes or threats to social, cultural, or political norms.