Within these line items on the balance sheet, each class of shares will typically include the par value of the issue and the number of shares authorized, issued and outstanding. The retained earnings portion will show the amount that the company has retained from earnings for reinvestment. All income or loss amounts each quarter will move to the retained earnings section of the balance sheet. Other items in the shareholder equity section include any changes in accounting policies that are retroactively applied, foreign currency adjustments and other comprehensive income or loss. The statement of retained earnings or statement of shareholder's equity will provide users with a more detailed breakdown of the items effecting these accounts.
Minority interest refers to the ownership of a part of a company by a separate legal entity.
This minority interest is considered to own a part of the company's net assets and therefore liabilities and shareholder's equity is reduced by this amount. Minority interest is not recognized as either a liability or part of shareholder's equity. It is commonly inserted between the two on the balance sheet. The income statement provides users with a measure of the firm's operating performance over a particular period of time. The income statement contributes many of the financial measures we use to analyze company's such as earnings per share and revenue growth.