Fund Flow Statement and Income Statement| Accounting

The upcoming discussion will guide you about the difference between fund flow statement and income statement.

Difference # Fund Flow Statement:

1. There is no prescribed format for preparing a Fund Flow Statement.


2. While preparing the statement both capital and revenue items are considered.

3. Income Statement helps the preparation of Funds Flow Statement. It is comple­mentary to Income Statement.

4. It highlights the changes in the financial position of a business and indicates the various means by which funds were obtained during a particular period and the ways to which these funds were employed.

Difference # Income Statement:

1. It is prescribed in a prescribed form.

2. Only revenue items are considered.

3. Income Statement is not prepared from Funds Flow Statement.


4. It does not reveal the inflows and outflows of funds but depict the items of expenses and income arrive at the figure of profit or loss.

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