Question

Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss. and explain it. ( words 650 )

Answer 1

1.Common Stocks Issues and Repurchases

2.Preference Stocks Issues and Repurchases

3.Dividends Declared

Step-by-step explanation:

Common Stocks Issues and Repurchases

Common Stockholders have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.

Preference Stocks Issues and Repurchases

Preference Stockholders do not have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.

Dividends Declared

Dividends Paid are not included in Profit and Loss but in Statement of Changes in Equity.

Payment of Dividends adjusts the Retained Earnings Amount in Statement of Changes in Equity.