Are companies reporting under U$.$S$.$ GAAP required to prepare a statement of$$ stockholders' equity? Explain.

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Part $1$

A$.$

Yes. Both U$.$S$.$ GAAP and the SEC require the preparation of a statement of$$ stockholders' equity.$$ Thus, both public and$$ non$-$public companies are required to prepare a statement of$$ stockholders' equity.

B$.$

Yes. U$.$S$.$ GAAP requires the preparation of a statement of$$ stockholders' equity. The statement of$$ stockholders' equity can be reported in place of a statement of comprehensive income.

C$.$

No$.$ Although U$.$S$.$ GAAP does not require a statement of$$ stockholders' equity, it is required by IFRS.$$ Thus, U$.$S$.$ companies are not required to provide the statement of$$ stockholders' equity with their financial statements.$$ However, foreign companies are required to include a statement of$$ stockholders' equity.

D$.$

No$.$ Although U$.$S$.$ GAAP does not require a statement of$$ stockholders' equity, it is required by the SEC.$$ Thus, U$.$S$.$ non$-$public companies are not required to provide the statement of$$ stockholders' equity with their financial statements.$$ However, most$$ non$-$public companies do include a statement of$$ stockholders' equity on a voluntary basis.