# Accounting/Financial reporting question Tweet

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1. Accounting/Financial reporting question
Hi everyone,

I am wondering if anyone can help me to find how to calculate the opening equity (beginning of year balance) when preparing a statement of changes in owners equity.

The problem I have is that I only have the summarised (end of year 31/12/20XX) statement of financial position and summarised income statement.

The only working I have in regards to preparing the SOCE is: Closing equity = Opening Equity + profits for year - dividends.

But i can't seem calculate or find the opening equity.

Hope you can help
Thanks

Last edited by johnnerz; 03-08-2012 at 13:46.
2. Re: Accounting/Financial reporting question
Here is a link to the example I am trying to explain:
http://www.flickr.com/photos/84142920@N02/7703866840/in/photostream/lightbox/

The opening equity is given in the summarised SOCE, however, i don't know how you calculate it from the above two statements?

3. Re: Accounting/Financial reporting question

Here is an example I am trying to explain above. How do you calculate the opening equity from the above two statements?
Last edited by johnnerz; 03-08-2012 at 13:47.
4. Re: Accounting/Financial reporting question
I've managed to work it out.

You need to calculate beginning of retained earnings first to find opening equity. It can be done from the adjusted statements.

Beginning retained earnings = ending retained earnings + dividends - net income

Beginning retained earnings + share capital = opening equity

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