Statement of Changes in Net Equity (DMPL)

14/07/26 •0•0

Understand the Statement of Changes in Net Equity (DMPL), its structure, purpose and importance in accounting analysis, showing variations in equity and results accumulated throughout the fiscal year.

Escrito porLeon Diniz

Traduzido porEditorial

Revisado porEditorial

When a student begins studying accounting, they usually pay attention to three reports: the Balance Sheet, the Income Statement, and the Cash Flow Statement.

But there is a statement that many ignore and that often reveals information that does not appear clearly in the other reports: the Statement of Changes in Equity (DMPL).

While the Income Statement shows how the company generated profit, the DMPL shows what happened to the owners’ wealth. And these two things are not always the same.

What is the DMPL?

The Statement of Changes in Equity shows all movements that occurred within equity during a period. In other words, it explains why Equity changed.

If Equity was R$ 1 billion in January and became R$ 1.2 billion in December, the DMPL answers: “Where did this R$ 200 million come from?”

The balance sheet only shows the beginning and the end. But it does not explain: Was there profit? Was there a capital contribution? Was there a share issuance? Were there dividends? Was there a share buyback? Was there a loss? Were there foreign exchange adjustments? The DMPL was created precisely to explain these movements.

The DMPL answers questions such as: did the profit remain in the company? Or was it distributed to the owners? Was there a capital increase? Or did the company raise money from shareholders? Did equity grow because of profit? Or did it grow because the owners put money in? Is the company decapitalizing? Or is it strengthening its equity?

Structure of the DMPL

The DMPL usually has columns for each equity account. These include: Share Capital, Capital Reserves, Profit Reserves, Equity Valuation Adjustments, Accumulated Profits, and Treasury Shares. And rows showing the events of the period.

Situations that may occur in the DMPL

High profit and stagnant equity

Imagine a profit of R$ 1 billion, but dividends of R$ 950 million. The investor may conclude: “The company is distributing almost everything.” This can be good or bad. It depends on the strategy.

Equity growing without profit

Imagine a loss of R$ 100 million, but a capital increase of R$ 500 million. Equity grows. But not because the company is profitable. The owners are sustaining the operation.

Equity decreasing despite profit

Imagine profit of +500, but dividends being paid in the range of -700. Result: Equity falls. Even with profit.

Aggressive share buyback

Imagine profit of 200 million and a share buyback in the range of 600 million. The company may be increasing return per share, reducing cash, and raising financial risk.

Huge OCI

The Statement of Comprehensive Income shows a comprehensive loss of R$ 2 billion. The DMPL shows a direct reduction in equity adjustments. Many investors do not notice this by looking only at the Income Statement.

What do investors observe in the DMPL?

Dividend policy

How much of the profit is being distributed?

Retention of profits

How much is being reinvested?

Dependence on contributions

If a capital increase by the owners appears every year, it may indicate a weak operation and a constant need for money from the owners.

Quality of equity growth

Investors ask: Did equity grow because the company made a profit or because shareholders put money in?

Use of share buybacks

A buyback may indicate management’s confidence, but it may also mask an operational decline or excessive use of cash.

Summary

The DMPL is the report that connects the Balance Sheet, the Income Statement, and the Statement of Comprehensive Income.

It explains all changes that occurred in equity and makes it possible to understand: where equity growth came from; where the profit went; how much was distributed to shareholders; how much was retained; whether there were capital contributions; whether there were share buybacks; whether relevant equity adjustments occurred.

For this reason, many analysts consider the DMPL one of the most underestimated statements in accounting, but one of the most useful for understanding whether shareholders’ wealth is truly increasing over time.

Example with Petrobras’ DMPL

Petrobras’ DMPL

Column	Meaning
Subscribed and paid-in capital	Money originally invested by shareholders
Capital reserve, capital transactions, and treasury shares	Share buybacks and other transactions with shareholders
Profit reserves	Retained earnings from previous years
Other comprehensive income	Accumulated amount from the Statement of Comprehensive Income
Accumulated profits	Profit not yet allocated
Total Petrobras shareholders’ equity	Equity belonging to Petrobras shareholders
Non-controlling interests	Portion belonging to minority shareholders
Total consolidated	Sum of the two

Situation at the beginning of 2025:

Account	Amount
Share capital	205.432
Capital reserve	(2.241)
Profit reserves	94.977
Accumulated OCI	67.838
Total Petrobras	366.006
Non-controlling interests	1.508
Total consolidated	367.514

Petrobras shareholders’ equity was R$ 366 billion, including minority interests: R$ 367.5 billion. It canceled treasury shares using the Profit Reserve: -5.563.

Accumulated profits +35.209; this amount came from the Income Statement. OCI of -5.374; this amount came from the Statement of Comprehensive Income. Dividends paid were -112.

Now in 2026, equity started much higher because it includes accumulated profits from 2025; reserves; and retained dividends. There were prescribed dividends, which are dividends that were declared but were never withdrawn by the shareholder and expired under the legal deadline. Therefore, this money returns to the company.

An experienced investor immediately notices that equity grew from 366 billion reais to 445 billion. Huge growth. There is a very large profit reserve, from 94 billion to 158 billion. This shows strong historical cash generation and future distribution capacity. OCI falling by more than 22 billion reais suggests strong foreign exchange effects.

Exercises

1) (Quadrix - 2026 - CRBM 6th Region - Accountant) In carrying out the accounting activities of a public entity, the accountant must correctly apply the fundamental concepts of accounting and the applicable Brazilian standards. Based on this information, judge the item. The purpose of the Statement of Changes in Equity is to show exclusively the changes that occurred in capital reserves during the fiscal year. True or false?

2) (ADM&TEC - 2025 - Municipality of João Alfredo - PE - Accountant) Evaluate the statements about the financial statements of corporations (Law No. 6,404/76):

I. The Statement of Changes in Equity (DMPL) shows changes in owners’ equity, covering reserves and accumulated profits.

II. The Cash Flow Statement fully replaces the Balance Sheet, making its presentation unnecessary.

III. The disclosure of Explanatory Notes complements the statements, clarifying criteria and relevant facts.

IV. The Statement of Value Added (DVA) is mandatory for all publicly traded companies, reflecting the generation and distribution of wealth.

The CORRECT alternatives are:

A) I and III, only.

B) II and IV, only.

C) I, III, and IV, only.

D) I, II, and III, only.

3) (OBJETIVA - 2025 - Municipality of Rio do Oeste - SC - Accountant) Regarding statements of changes in equity, mark the CORRECT alternative.

A) It shows the allocation of the profit or loss for the period.

B) It presents the company’s assets, rights, and obligations.

C) It shows the changes that occurred in the company’s equity.

D) It reports the company’s cash inflows and outflows.

4) (CESPE / CEBRASPE - 2026 - IPAAM - Environmental Analyst – Specialty: Accounting Sciences) The statement of changes in equity (DMPL)

A) may be replaced by the DVP.

B) is mandatory for all entities of the Federation entities.

C) is not expressly provided for in the MCASP.

D) is mandatory only for autonomous agencies.

E) is optional for direct administration bodies and mandatory for dependent state-owned companies (corporations).

5) (FUNDEP (Contest Management) - 2024 - Municipality of Manhuaçu - MG - Accountant) Mark the alternative that presents only items specified in the Statement of Changes in Equity.

A) Accounts receivable, dividends payable, and capital transactions with owners.

B) Allocation of profit or loss, deferred taxes, and interest on equity.

C) Profit or loss for the period, prior-period adjustments, and allocation of profit or loss.

D) Prior-period adjustments, capital transactions with owners, and cash.

6) (FUNDATEC - 2024 - Municipality of Dona Francisca - RS - Accountant) Match Column 1 to Column 2, associating the following financial statements with their respective definitions.

Column 1

1. Balance Sheet (BP).

2. Income Statement for the Period (DRE).

3. Cash Flow Statement (DFC).

4. Statement of Changes in Equity (DMPL).

Column 2

( ) Intended to show, qualitatively and quantitatively, on a given date, the entity’s equity and financial position.

( ) Intended to show the changes, in nature and amount, that occurred in equity.

( ) Intended to show historical changes in an entity’s cash and cash equivalents through a statement that classifies the cash flows for the period by operating, investing, and financing activities.

( ) Intended to show the composition of the result formed in a given period of the entity’s operations.

The correct order for filling in the parentheses, from top to bottom, is:

A) 1 – 2 – 3 – 4.

B) 1 – 4 – 3 – 2.

C) 2 – 1 – 4 – 3.

D) 3 – 2 – 1 – 4.

E) 4 – 3 – 2 – 1.