Fund flow statement ppt

by kunal anand

1. Topic Funds flow statement

2. Contents Meaning Objectives Importance Limitations Preparation of fund flow statement Format Conclusion R efrence

3. Meaning of funds flow of statement A Funds F low S tatement is prepared in summary form to indicate changes occurring in items of financial conditions between two different Balance S heet dates .

4. Objectives To find out the position of working capital on two dates of balance sheets. To know the changes in working capital during this period. To know the causes of changes in working capital . To know the inflow of funds according to their sources. To know the item-wise outflow of funds during this period.

5. Importance I mportance of management Importance for shareholders Importance for Financiers Importance to other parties

6. Limitations of Funds F low Statement Not a Substitute of Annual A ccounts Historic in nature Less Importance to Changes in Cash Not an O riginal Financial Statement Ignores Non-fund Transactions

7. Preparation of Funds Flow Statement Balance Sheet at the beginning of the year (or last year’s Balance Sheet). Balance Sheet at the end of the year (or Current year’s Balance Sheet). Income statement or Profit & loss A/c of the current year. Any other formation which affects the flow of funds.

8. F ormat

9. Adjusted profit and loss account

10. Fund flow statement

11. conclusion Fund flow statement is very important for every organization .It can really determine how the business should be carried on in the future. As we know the aim of fund flow statement is to know the working capital of the company whether it increases or decreases during a given period of time. So it is a main tool to make a organization to survive in the future.

12. Refrence Management accounting by Dr K L Gupta

13. Thank you