608 B
608 B
It's the link because it takes total comprehensive income from the income statement and feeds it into retained earnings on the balance sheet. That's literally its job — bridging those two statements.
The Statement of Cash Flows (A) is more of a standalone explanation of how cash moved during the year — it reconciles the opening and closing cash balances, but it doesn't directly link income to equity.
Think of it this way:
- Income Statement → feeds into → Statement of Changes in Equity → feeds into → Balance Sheet
- That chain is how the statements connect to each otherB