What is the main purpose of the statement of changes in equity?

The main purpose of the statement of changes in equity is to display the movement in equity from transactions with owners and comprehensive income. This statement provides a clear overview of the changes in a company's equity during a specific reporting period, detailing how factors such as profits, losses, dividends, and other comprehensive income items contribute to the overall equity position.

Specifically, it highlights transactions with owners, such as issuing new shares or buying back shares, and reflects how the company's retained earnings are affected by its performance over the period. By capturing both the contributions from owners and the impact of the company’s financial performance on equity, this statement offers stakeholders essential insights into the company’s financial health and its ability to generate value for its shareholders.

This contrasts with the other choices: the statement does not primarily focus on income (as that is covered in the income statement), nor does it show cash flow activities (which are detailed in the statement of cash flows). Additionally, it is not designed to summarize liabilities, which are presented on the balance sheet.