Accounting Standards Codification 215 (ASC 215) was released to address the more specific topic of the Statement of Shareholder Equity.
This statement is important because it shows the amount of the businesses finances which belong to the owners and is where profits are stored before being paid out in the form of dividends as well as potentially plowed back into the business. Several items can effect shareholder equity such as stock options, net gains/losses, dividends paid, etc. It is for this reason that this statement is integral to the understanding of the financial statements.
For more in depth information on this and other FASB ASC topics, check out the following books.
*Technical versions of the standards, authoritative literature can be found in the Financial Accounting Standards Board website.
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