[johnnerz]

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

[johnnerz]

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?

[johnnerz]

Here is an example I am trying to explain above. How do you calculate the opening equity from the above two statements?

[johnnerz]

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