Equity is the portion of a company's assets that the shareholders own, as opposed to what they have borrowed. Equity is equal to total assets minus liabilities. Also referred to as "owners' equity" or "shareholders' equity". In accounting and financial analysis the term "equity" is also equivalent to terms "net worth" and "net assets".
Equity is detailed on the balance sheet (statement of financial position).
According to the IFRS equity consists of the following items:
Equity = (Issued (share) capital + Share premium – Treasury shares + Other equity interest + Other reserves + Retained earnings)* + Non-controlling interests
* Forms "Equity attributable to owners of parent".
If equity is negative, then an entity is balance sheet insolvent.