Scribd
Upload
59 views9 pages

Fund Flow Statement: Prof. Bharat Vira

The document discusses the fund flow statement, which analyzes the reasons for changes in a company's financial position between two balance sheets. It shows the inflow and outflow of funds, or the sources and applications of funds, for a particular period. There are two types of inflow: long-term funds raised through share/debenture issues or asset sales, and funds generated from operations. The objectives of the fund flow statement are to explain changes in financial position, analyze operational position, help with resource allocation, evaluate financial position, and act as a future guide. It analyzes how changes in current assets and liabilities impact working capital.

Uploaded by

Nishi Mandavia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
59 views9 pages

Fund Flow Statement: Prof. Bharat Vira

The document discusses the fund flow statement, which analyzes the reasons for changes in a company's financial position between two balance sheets. It shows the inflow and outflow of funds, or the sources and applications of funds, for a particular period. There are two types of inflow: long-term funds raised through share/debenture issues or asset sales, and funds generated from operations. The objectives of the fund flow statement are to explain changes in financial position, analyze operational position, help with resource allocation, evaluate financial position, and act as a future guide. It analyzes how changes in current assets and liabilities impact working capital.

Uploaded by

Nishi Mandavia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Fund Flow Statement

Prof. Bharat Vira


Meaning of fund flow statement

 Fund simply means availability of cash in daily use.


 Funds Flow Statement is a statement prepared to analyse the reasons for
changes in the Financial Position of a Company between 2 Balance Sheets. It
shows the inflow and outflow of funds i.e. Sources and Applications
of funds for a particular period.
 In other word its prepare to explain the changes of working capital position of
the company.
 There are two types of Inflow of funds –
 1.Long term fundraised by issue of share, debenture or sale of fixed asset
 2.Funds generated from operations
Definition of fund flow statement

 A statement showing money coming into and


going out of a business in a particular period of
time, where this money came from, and what it
was used for.
objectives of fund flow statement

 To explain the changes in financial position


  To analyze the operational position
 To help in proper allocation of resources
 To evaluate financial position
 To act as future guide
Position of assets liabilities

•    Increase in current asset – increase in working capital.


•    Decrease in current asset – decrease in working capital.
•    Increase in current liability - decrease in working capital.
•    Decrease in current liability – increase in working capital.
The format of schedule of changes in
working capital
Profarma of fund flow statement

You might also like