Final answer:
The 'statement of changes in equity' format is prescribed by IFRS, and it summarizes the movements in a company's equity over a specific period, including share capital transactions, dividends, and profits or losses.
Step-by-step explanation:
The format used for a 'statement of changes in equity' is governed by financial reporting standards, and the correct answer to this question is A) IFRS (International Financial Reporting Standards). The statement of changes in equity is a component of the financial statements that summarizes the movements in equity for a period. It includes items such as issued share capital, dividends, profits or losses, and other adjustments. This statement is particularly useful for investors and shareholders as it provides insights into the company's transactions and events that have impacted the total equity. Organizations following the GAAP (Generally Accepted Accounting Principles) would also prepare a similar statement, often referred to as the statement of stockholders’ equity.