The IASB has set forth a conceptual framework that it will use in developing standards. As part of this Framework, the IASB defines various elements of financial statements.
Answer the following questions based on the Framework.
(a) Define and discuss the term “equity.”
(b) What transactions or events change equity?
(c) What financial statement element other than equity is typically affected by owner investments?
(d) What financial statement element other than equity is typically affected by distributions to owners?
(e) What are examples of changes within equity that do not change the total amount of equity?