Companies generally issue common stock or preferred stock. The investors’ ownership is indicated by way of the shares/stock. It contains the capital invested by the investors of the company. ![]() read moreand it is one of the financial elements used by analysts to understand the company’s financial progress. The most common users to the financial statements are Management of the Company, Investors, Customers, Competitors, Government and Government Agencies, Employees, Investment Analysts, Lenders, Rating Agency and Suppliers. It provides information relating to equity-related activity to the users of financial statements Users Of Financial Statements Financial statements prepared by the Companies are used by different categories of individuals and corporates on the basis of their relevancy to the respective parties. It is also known as Shareholder’s Equity. Stockholders’ equity is the company that has settled the value of assets available to the shareholders after all liabilities. It contains share capital and retained earnings. ![]() ![]() Stockholder’s Equity Statement DefinitionĪ stockholder’s equity statement is a financial report which forms part of the financial statements that capture the changes in the equity value of the company (i.e.) increase or decrease in equity value from the commencement of a given financial period to the end of that period.
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