Fall 2018 #24

xQEDxxQEDx
in CIA.Accting

Does anyone know why all of a sudden we need to do the change in AOCI for the equity 2017 formula? Completely clueless here.

Comments

  • javidjavid

    Equity is as of the end of year, rather than for the year

    So when we compute equity as of the end of the year, we start of with equity as of the beginning of the year, and then add on what has changed since.

    We add net income for the year.

    Since AOCI is also as of the end of the year (i.e. cumulative), we add the incremental change in AOCI -- had we just added AOCI, we would have been double counting as the AOCI as of the beginning of the year would have already been captured in the equity as of the beginning of the year

  • xQEDxxQEDx

    I think we should maybe add precision then to the way the information is displayed in the BattleActs article. Makes sense, though. Thanks Javid.

  • javidjavid

    Is there a specific part of the article that you are referencing? Or are you suggesting the adding some notes for this question within the Wiki?

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