Consolidated statement of changes in equity

In this lesson

1. 0:00 Group statement of changes in equity overview
2. 2:05 Single company to group format changes
3. 3:27 Group statement structure and columns
4. 5:08 Calculating group and NCI equity movements
5. 10:28 NCI equity calculation walkthrough
6. 12:58 Summary and key takeaways

About this lesson

We'll walk through the key differences between single-company and group formats, then work through a practical example showing how to split movements in equity between the group and the noncontrolling interest (NCI). The consolidated statement uses just two main columns: one for group equity and one for NCI equity. You'll learn how to calculate opening balances, add total comprehensive income (split between group and NCI shares), deduct dividends, and arrive at closing balances. The critical skill here is understanding that only the group's share of subsidiary profits flows into the group column—typically the parent's full profit plus the group's percentage of post-acquisition subsidiary profit—while the NCI column captures only the minority shareholders' share. By working through the example of Alpha acquiring 80% of Beta, you'll see how to handle acquisitions that occur at the year start, where there's an opening NCI balance but no prior post-acquisition profit to consolidate. You'll also discover a useful technique: if one figure is missing from your calculation, you can always work it out as the balancing figure. This approach—opening balance plus total comprehensive income minus dividends—applies consistently to both columns, making the format logical and manageable once you grasp the consolidation principles.

Duration: 14m