Statement of Stockholders' Equity

B

Any cumulative impact on prior period earnings is reported net of tax after extraordinary items and discontinued operations on the income statement.

The Statement of Stockholders' Equity is a financial statement that provides information about the changes in equity during a specific period. It typically includes details about the initial investment of the owners, retained earnings, dividends, and other comprehensive income.

Among the given options, the item that the Statement of Stockholders' Equity does not report is:

A. Any minimum pension liability.

The Statement of Stockholders' Equity does not include information about the minimum pension liability. Minimum pension liability refers to the additional liability that arises when the projected benefit obligation (PBO) exceeds the fair value of plan assets in a defined benefit pension plan. This liability is reported on the balance sheet as a separate item, not on the Statement of Stockholders' Equity.

Let's go through the other options to understand why they are included or not included in the Statement of Stockholders' Equity:

B. Any cumulative impact on prior period earnings. The cumulative impact on prior period earnings is included in the Statement of Retained Earnings, which is a component of the Statement of Stockholders' Equity. It represents the adjustment to retained earnings resulting from the correction of errors or changes in accounting principles that affect prior periods.

C. The investment of the owners in the firm. The investment of the owners in the firm, also known as contributed capital or equity capital, is a key component of the Statement of Stockholders' Equity. It represents the initial investment made by the owners and subsequent additional investments.

D. The various accounting adjustments that reflect selected market value changes in noncurrent assets. The various accounting adjustments that reflect selected market value changes in noncurrent assets are typically reported in other comprehensive income (OCI), which is a separate section of the Statement of Stockholders' Equity. These adjustments are not included in the net income or retained earnings but are shown in OCI until they are recognized in the income statement.

E. The effect of exchange rate changes on certain foreign subsidiaries. The effect of exchange rate changes on certain foreign subsidiaries is also reported in other comprehensive income (OCI), similar to the accounting adjustments mentioned in option D. These changes reflect the impact of fluctuations in exchange rates on the translation of foreign subsidiary financial statements into the reporting currency.

To summarize, the Statement of Stockholders' Equity does not report any minimum pension liability. It includes information about the investment of the owners in the firm, cumulative impact on prior period earnings, accounting adjustments reflecting selected market value changes in noncurrent assets (in other comprehensive income), and the effect of exchange rate changes on certain foreign subsidiaries (also in other comprehensive income).