Acca financial Accounting (FA) Study Text ac ca (FA)

Calculate the amounts shown in the statement of changes in equity 

(SOCIE) and statement of financial position (SFP) in relation to 

dividends for the year. 

SOCIE SFP 

$000 

$000

A 200 150 

B

54

nil

C 200 146 

D 101  72

 

9 Other 

reserves 

In addition to using loan capital and share capital, companies also use the 

capital created internally to generate wealth by reinvesting accumulated profits 

(also referred to as retained earnings) back into the business. These capital 

sources represent the profits made by the business and the increase in value of 

tangible non-current assets which have been accounted for and recognised in a 

revaluation surplus account. They are referred to as other components of equity 

(or reserves). 

They are included in the statement of financial position. Movements in share 

capital and other components of equity the accounting period are summarised 

and disclosed in the statement of changes in equity. 

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