statement of change in equity

A statement of change in equity, also called a statement of retained earnings, is a financial report that shows changes in a business owner’s equity over a specific period. It includes net profit or loss, dividends, owner withdrawals, changes in accounting policies, corrections of prior period errors, and movements in retained earnings or reserves.

[Last reviewed in July of 2025 by the Wex Definitions Team]

Wex

• COMMERCE
• accounting
• banking
• financial services