Adjustments to shareholders’ equity refer to all modifications that affect the value of a company’s net worth and are reflected in the balance sheet. These adjustments include elements such as revaluations, bonus shares, stock splits, dividends paid, new capital investments, contributed surplus, currency exchange adjustments, and treasury stock transactions, among others. Understanding these adjustments is crucial for assessing a company’s financial health and proper market valuation, along with predicting its earning potential in the future.