Format Of Fund Flow Statement

Format Of FUND FLOW STATEMENT

Three Statements are prepared:

1)      Statement of Working Capital Changes

2)      Fund from Operations

3)      Fund Flow Statement

I)                   FORMAT OF SCHEDULE OF WORKING CAPITAL CHANGES

II)                PROFIT FROM OPERATIONS or LOSS FROM OPERATIONS:

         Balance of P/L a/c (current year) as per B/S                                       …………

Less: Balance of P/L a/c (previous year) as per B/S                                    …………

Add: Appropriations :

(i)                 Transfer to Reserve         ……….

(ii)               Proposed Dividend          ……….

(iii)             Interim Dividend              .……...

(iv)             Other Reserves etc.          ……….                                           …………

Net Profit for the current year                                                              …………

Add: Non-cash items:

         Depreciation

         Preliminary Expenses

         Goodwill written off

         Discount on Debenture

         Fixed Assets written off

Add: Non-operating Losses:

         Loss on Sale of Fixed Assets

         Loss on Sale of Long-term Investments

Less: Non-operating Incomes:

         Profit on Sale of Fixed Assets

         Interest & Dividend Received

III)          Format of Fund Flow Statement

Fund Flow Statement
(As on…………..)

Sources of Funds	Amount	Application of Funds	Amount
Issue of share capital	…….	Redemption of pref. share	……..
Issue of debenture	…….	Redemption of debenture	…….
Raising of long term loan	…….	Payment of long term loan	……….
Sales of fixed assets	…….	Purchase of fixed assets	……….
Interest received	…….	Interest paid	……..
Dividend received	…….	Dividend paid	.…….
Refund of Taxes	…….	Payment of Taxes	……..
Decrease in working capital	…….	Increase in working capital	……..
Fund from operation	…….	Fund lost in operation	.…….
TOTAL	……..	TOTAL	……..

DIFFERENCE BETWEEN CASH FLOW & FUND FLOW STATEMENT

Cash Flow Statement	Fund Flow Statement
It shows net change in the position of cash and cash equivalents	It shows change in the position of „working capital‟.
It is based on narrower concept of funds i.e. cash and cash equivalents.	It is based on broader concept of funds i.e. working capital.
Now, it is mandatory for all the listed companies and is more widely used in India or abroad.	It is not mandatory and it is not being used by the companies.
Changes in working capital are adjusted for ascertaining cash generated from operations.	Statement of changes in working capital is prepared under fund flow statement.
In Cash flow statement, decrease in current liability or increase in current assets results in decrease in cash and vice – versa.	In working capital, decrease in current liability or increase in current asset brings increase in working capital and vice – versa.