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The funds flow statement is the earlier version of the statement of cash flow, it primarily reported changes in an entity's net working capital position between the beginning and end of an accounting period.
In the past, It was required under GAAP to prepare funds flow statement.
The core purpose of the funds flow statement is to ensure continuous liquidity and working capital for an organisation. It is also a regulatory requirement for the management to prepare and submit periodical returns..
The term "Flow of Funds" refers to changes or movement of funds or changes in working capital in the normal course of business transactions. Thus Fund Flow Statement is prepared to analyse the changes in working capital between two balance sheet dates by analysing the inflow and outflow of funds.
To Check the movement of Funds, also the xpected income funds and the funds required to utilize for current and future operations.
Agreed with the answers............................................................
AGREE WITH Mir Mujtaba Ali Internal Audit Manager
Agreed with the answer Mir Mujtaba Ali
fund flow statement prepared for cash recieps & cash disbusements & and its purpose shows fund flow from activities to control & get proper finance for business
Agree with all qolleagues ,,,,,,,,,,,
Fund Flow Statement is the flow of inflow & outflow of the fund. To know the fund position & its best uses.
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