Final answer:
The statement that equity dividends proposed after the reporting period should be included in the company's statement of changes in equity is true. It provides transparency and vital information for both current and potential shareholders about the company's financial position and potential returns on their investment.
Step-by-step explanation:
When addressing the question about equity dividends proposed after the reporting period being included in a company's statement of changes in equity, the answer is true. After a reporting period ends, a corporation may propose equity dividends that are then reported in the statement of changes in equity. This statement is part of the financial statements that disclose the movement in equity over the reporting period, including total comprehensive income, transactions with shareholders (such as dividends), and any changes in ownership interests.
Dividends are a direct form of return on investment for a company's shareholders and represent a portion of the corporation's profits. Reporting proposed equity dividends post-reporting period helps to give current and potential investors an informed view of the company's financial position and the returns that they might expect on their investment. It also supports the principles of transparency and provides crucial information for decisions related to diversification and investment strategies in the context of reducing investment risk.