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Shareholders' equity rollforward belongs in a dated, class-level equity analysis. A shareholders' equity rollforward reconciles each component from opening to ending balance. It should show capital stock by class, APIC sources, retained earnings, accumulated other comprehensive income, treasury stock, and noncontrolling interests when applicable.
Apply it
If opening equity is $10 million, profit adds $1.2 million, dividends remove $300,000, share issues add $500,000, and treasury purchases remove $200,000, ending equity is $11.2 million. Each movement must also tie to its own ledger and statement line.
Review shareholders' equity rollforward against additional paid in capital. Reconcile shareholders' equity rollforward to treasury stock, the dated shareholders' equity rollforward evidence, and its final presentation.
Keep the boundary clear
Balancing total equity can hide an incorrect share count or component classification. The rollforward is a control bridge, not a substitute for the share register, journal entries, or rights disclosures.
Authority
Read ASC 505-10-50-2 for required disclosure of changes in equity accounts and shares.
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- Equity — Understand
To apply this concept: Required. This prior idea supplies the quantities or classification needed for the current analysis.