Fund Flow Statement

Fund Flow Statement Meaning:
Fund Flow Statement consists of two words – fund and flow. Fund means cash or working capital or all resources of fund and flow means change. Thus fund flow refers to change in financial position in beginning of financial period to end of year. A summary of firm’s inflow and outflow of funds is a fund flow statement. It indicates the flow of funds in a particular period. It shows the sources and uses of application and change in working capital in an organisation or a firm. It includes schedule of changes of working capital, profit and loss account or sources of application and a fund flow statement. Fund flow statement is an operating statement as it summarises the financial activities for a period of time.

Coleman has rightly stated, “A fund flow statement is a statement summarizing the significant financial change which have occurred between the beginning and the end of a company’s accounting period.”

A fund flow statement is known by different names such as:
1. Where got where gone statement
2. Statement of sources and applications of funds.
3. Statement of changes on working capital.
4. Statement showing summary of financial operations.
5. Statement of sources and applications of working capital.
6. Statement of changes in financial position.