Financial statements
Equity reconciliation
Reconcile opening to closing equity through profit, dividends, share issues and buy-backs.
Corvina Instruments plc · year ended 31 December 2026
Change the year's movements. Each one is posted to the company's ledger, and the statement of changes in equity below is built from those entries, component by component (IAS 1.106).
| Movement | Share capital | Share premium | Treasury shares | Revaluation surplus | Retained earnings | Total equity |
|---|---|---|---|---|---|---|
| Balance at 1 January 2026 | 100,000 | 40,000 | (12,000) | 30,000 | 185,000 | 343,000 |
| Profit for the year | – | – | – | – | 64,500 | 64,500 |
| Other comprehensive income: revaluation of property | – | – | – | 8,000 | – | 8,000 |
| Total comprehensive income for the year | – | – | – | 8,000 | 64,500 | 72,500 |
| Issue of ordinary shares | 20,000 | 30,000 | – | – | – | 50,000 |
| Purchase of own shares | – | – | (9,000) | – | – | (9,000) |
| Dividends declared | – | – | – | – | (22,000) | (22,000) |
| Balance at 31 December 2026Enter each closing balance |
Why profit and OCI share a subtotal: both are changes from performance (total comprehensive income). Share issues, buy-backs and dividends are transactions with owners in their capacity as owners, shown separately.
The revaluation surplus is not recycled through profit or loss; on disposal it may be transferred directly to retained earnings (IAS 16.41).
Learn it properly
- Closing entries and the post-closing trial balance · Journal Entries and the General Ledger
- The statement of changes in equity · Financial Statements
- Dividends and retained earnings · Liabilities and Equity
More financial statements simulators
All companies and figures in the simulators are fictional.