Funds flow statement reflects the change in working capital during a period through those transactions which affect the funds - termed as 'cross transactions'. The change is shown as a 'consolidated figure'. However it is preferable to prepare the 'working capital statement' which shows the complete details of the contribution of each item of current asset and current liability towards [...]
In this article we will discuss about:- 1. Meaning of Funds Flow Statement 2. Preparation of Funds Flow Statement 3. Benefits and Drawbacks. Meaning of Funds Flow Statement: The profit and loss account and balance sheet statements are the common important accounting statements of a business organization. The profit and loss account provides financial information relating to only a limited [...]
In this article we will discuss about the Funds Flow Statement:- 1. Meaning of Funds Flow Statement 2. Rules for Drawing up the Funds Flow Statement 3. Advantages 4. Limitations. Meaning of Funds Flow Statement: Accounting Standard (Revised)-3 has made Funds Flow Statement obsolete. Hence, the following description is meant only for those who may, for some reasons, still be [...]