Sahil In: Category - Capital or EquityWhat all is included in equity?equityincluded in equity ShareFacebook1 AnswerVotedRecent Aastha 2020-07-29T22:00:08+05:30Added an answer on July 29, 2020 at 10:00 pm This answer was edited. We will first quickly run through the concept of equity –Equity is the capital raised by a company for the purpose of purchase of assets or for making an investment in a specific project or for the smooth functioning of operations. It’s important as it represents the value of an investor’s stake in a company.It can also be aid that its the sum of money that the company is required to pay at the time of its liquidation to its shareholders after realising all of its assets and paying off all of its debts. Equity is presented in the financial statement as a component of a Balance Sheet.The formula for calculating the company’s equity –Shareholder’s Equity = Total Assets – Total LiabilitiesInclusive list of items under the head” Equity”ParticularsEquity Share CapitalReserves and surplus 1. Securities Premium Reserve2. General Reserves3. Capital Redemption Reserve4. Revaluation Reserve5. Debenture Redemption Reserve6. Share Option Outstanding Account7. Others- (Specify the Nature and Purpose of such reserve)8. Retained EarningsOther Comprehensive Income1. Foreign Currency Translation Reserve2. Cash Flow Hedge ReserveVesting and Exercise of WarrantsIssuance of Non-Controlling InterestRepurchase of Stock optionIssuance of Common StockStock-Based CompensationExercise of Stock OptionsAdditional Paid-in CapitalThe Cumulative Effect of Changes in Accounting Principles related to Revenue Recognition, Income Taxes and Financial InstrumentsIt is generally presented under two subheads – Equity and Other Equity.The extract shown below indicates the position of Equity in a Balance Sheet – I hope this answers your question. Aastha 0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?