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Chapter 12
Other components of equity
5.1 Introduction to other components of equity
Other components of equity (i.e. other reserves) comprise the share premium
account (considered earlier in this chapter) together with revaluation surplus
(considered in chapter 7) and retained earnings. These reserves are included in the
statement of financial position and any movements during an accounting year are
summarised and disclosed in the statement of changes in equity.
Other reserves
Other components of equity
Revaluation Share Retained
surplus premium earnings
Records the total
Records the Records the of net profits and
unrealised gain excess above losses
on revaluation of nominal value earned/incurred
property, plant received when to date that have
and equipment shares issued been retained
within the
business
Cannot be Cannot be Can be distributed
distributed as a distributed as a as a dividend
dividend dividend
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