BC37 The exposure draft of 2006 proposed to separate changes in equity of an entity during a period arising from transactions with owners in their capacity as owners (ie all owner changes in equity) from other changes in equity (ie non‑owner changes in equity). All owner changes in equity would be presented in the statement of changes in equity, separately from non‑owner changes in equity.

BC38 Most respondents welcomed this proposal and saw this change as an improvement of financial reporting, by increasing the transparency of those items recognised in equity that are not reported as part of profit or loss. However, some respondents pointed out that the terms ‘owner’ and ‘non‑owner’ were not defined in the exposure draft, the Framework or elsewhere in IFRSs, although they are extensively used in national accounting standards. They also noted that the terms ‘owner’ and ‘equity holder’ were used interchangeably in the exposure draft. The Board decided to adopt the term ‘owner’ and use it throughout IAS 1 to converge with SFAS 130, which uses the term in the definition of ‘comprehensive income’.