FUND FLOW STATEMENT

MEANING OF FUND IN A NARROW SENSE: IT MEANS CASH OR MONEY

IN A BROAD SENSE: IT MEANS ALL FINANCIAL RESOURCES

IN A POPULAR SENSE: IN THE CONTEXT OF FUND FLOW STATEMENT,THE TERM FUND MEANS WORKING CAPITAL.IT IS THE EXCESS OF CURRENT ASSETS OVER CURRENT LIABILITIES

MEANING OF FLOW OF FUND

FLOW MEANS CHANGE. FUND MEANS WORKING C A P I TA L . T H U S F U N D F L O W M E A N S C H A N G E S I N W O R K I N G C A P I TA L . T H E F L O W O R M O V E M E N T M AY B E I N F L O W O R O U T F L O W. T H E I N F L O W O F F U N D I S CALLED SOURCE OF FUND. THE OUT FLOW OF F U N D I S K N O W N A S U S E O R A P P L I C AT I O N O F F U N D . I F T H E T O TA L S O U R C E S A R E M O R E T H A N T H E U S E , I T R E S U LT I N I N C R E A S I N G O F W. C . I F T H E T O TA L U S E S M O R E T H A N T H E S O U R C E S , I T R E S U LT S I N D E C R E A S E O F W. C . T H U S T H E F L O W O F F U N D O R C H A N G E S I N W. C M AY B E I N C R E A S E I N W O R K I N G C A P I TA L O R D E C R E A S E I N W O R K I N G C A P I TA L .

MEANING OF FUND FLOW STATEMENT

FUND FLOW STATEMENT IS A STATEMENT SHOWING THE SOURCES FROM WHICH FUNDS

WERE OBTAINED AND HOW THESE FUNDS WERE

USED. IT MEASURES THE CHANGES THAT HAVE

TAKEN PLACE IN THE FINANCIAL POSITION OF A

FIRM BETWEEN TWO BALANCESHEET DATES.

DEFINITION
IN THE WORDS OF ALMOND COLEMAN, THE FUND FLOW STATEMENT IS A STATEMENT SUMMARISING THE SIGNIFICANT FINANCIAL CHANGES WHICH WERE OCCURRED BETWEEN THE BIGNNING AND THE END OF A COMPANYS ACCOUNTING PERIOD.

OBJECTIVES OR USES OF FUND FLOW STATEMENT TO KNOW THE CHANGES IN WORKING CAPITAL DURING A PERIOD. TO UNDERSTAND THE WORKING CAPITAL POSITION OF THE FIRM.

TO ASSESS THE FINANCIAL CONDITION OF THE FIRM.

TO ANTICIPATE THE WORKING CAPITAL POSITION. TO REVEAL THE MOST IMPORTANT CHANGES THOSE HAVE TAKEN PLACE DURING A PARTICULAR PERIOD. TO PROVIDE A BASIS FOR BUDGETING.

TRANSACTION WILL BRING THE CHANGE IN THE WORKING CAPITAL

CURRENT ASSETS AND NON-CURRENT ASSETS

CURRENT ASSET AND NON CURRENT LIABILITIES

CURRENT LIABILITIES AND NON-CURRENT LIABILITIES

CURRENT LIABILITIES AND NON-CURRENT ASSETS

1.CURRENT ASSETS AND CURRENT LIABILITIES

2.NON-CURRENT ASSETS AND NON-CURRENT LIABILITIES 3.NON CURRENT LIABILITIES NON-CURRENT ASSETS