What is a statement of owner's equity?

A statement of owner's equity is a financial document that shows the value of a business at the end of an accounting cycle. It is one of the end-of-period accounting records a business is required to complete.

The financial document begins with the opening balance for the accounting period. It then lists the additions to the owner's equity account, deductions from the account and a final balance. Additions to equity include investments of assets, such as cash to the business and net income. Deductions from equity include a net loss for the accounting period or withdrawals made by the owner as a salary.