As a general rule, how should changes in equity be reported?

Changes in equity are reported as part of the results of operations for the period primarily to provide clear information about how various activities of the entity affect its overall financial position. This approach allows stakeholders to see the impact of revenues, expenses, and other operational activities on the equity of the entity in a cohesive manner.

When changes in equity are reflected in the results of operations, it encompasses a comprehensive view of overall performance, including profits or losses during the reporting period. This format is standard because it helps in understanding the sources and uses of equity, how operational decisions relate to ownership interests, and the overall financial health of the organization.

You might find variations in reporting practices across different entities or accounting frameworks, but the emphasis on including changes in equity as part of operational results serves to inform stakeholders about the financial dynamics throughout the period. This approach aligns with the principles of transparency and accountability in financial reporting, allowing for a complete picture of the institution's financial performance relative to its equity.