Transactions Affecting Shareholders' Equity

Steps:

• Identify total equity as share capital plus reserves minus liabilities.
• Analyze each option's impact on equity components.
• Bonus issue transfers reserves to share capital without new funds.
• Confirm other options alter equity totals via cash flows or valuations.

Why A is correct:

• Bonus issue reclassifies reserves to share capital, leaving total equity unchanged per accounting standards (IAS 1).

Why the others are wrong:

• B: Dividends reduce retained earnings, decreasing total equity.
• C: Rights issue adds new share capital from cash inflows, increasing total equity.
• D: Upward revaluation creates a revaluation surplus, increasing total equity.

Final answer: A