What is the statement of stockholders’ equity?

[Achilles]

Hi everyone, can someone explain what the statement of stockholders’ equity is in accounting?
I understand it has something to do with changes in equity, but I’m not sure what it includes or why it’s important.
A simple explanation would really help.

 

[Darcey]

The statement of stockholders’ equity is a financial report showing changes in a company’s equity over a period. It includes common stock, retained earnings, additional paid-in capital, and treasury stock. The report explains increases from profits or stock issuance and decreases from dividends or share buybacks.

 

[Emly]

The Statement of Stockholders’ Equity shows how a company’s owners’ equity changes over time, including stock issued or repurchased, retained earnings, dividends, and other gains or losses.