Equity statement is a part of financial statement which should be made by a public company. For a small business, Rare small business makes equity statement because they do not have to report the change of equity and the small business has not yet issue any shares in market exchange.

>an equity statement describes the change of equity in a company. In one year company running, there is must a change in equity position. The company may buy their shares (repurchase) or they may sell their own shares.

>The useful of equity statement is identifying the equity changes. The investor could analyze the equity through it. Off course, people do not like a company which does not pay the dividend. 

>The component of equity statement is common share, preferred shares, treasury shares, retained earning, additional paid in capital, and employee stock ownership plan (ESOP). 

>The company usually records the amount dollar of prefered shares and common shares at par value. The excess value of par value is recorded as additional paid in capital. If company decides to reduce the shares, they may record it at treausry shares. The company also record retain earning which is undividend earning. The retain earning will derease if the net income increase or dividend announcement decline.

The public company which hass issued shares must have a complicated equity statement.I still confused with the equity statement because some book also suggest putting other component such as: pension liability, unrealized gain on sales securities. Unrealized gain or loss on cash flow hedge, and cumulative foreign currency translation.  

>The company will record minimum liabilty, if there is excessive accounting liability of pension to accumulated benefit obligation.

In business relaity, we find the stock market also volatile so the stock price is not fixed. Therefore, the company must record the changes. Sometimes the stock company could higher or lower than the par value. If the price is higher then par, the company record unrealized gains. If, on the other hand, the price is lower than par, the company record the unrealized loss. The company also records the unrealized gain or loss from foreign currency movement.

>The equity statement also records the unrealized gain cash flow hedge. A good company usually uses hedges to protect their assets.