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sankar

sankar (Querist)
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08 January 2020 Is compulsory to prepare Fund flow statement?.
Who will prepare FFS? Company or Anyother person?

Aashok Kumar Sharma online

Aashok Kumar Sharma

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23 May 2020 Preparation of Fund Flow Statement is not compulsory. However it can be prepared to analyse the reasons or changes in the Financial position of a company. It shows the inflow & outflow of the funds i.e sources and application of funds for a particular period. In other words fund flow statement is prepared to explain the changes in the Working Capital position of the company.

Fund flow statement gives the clear picture about the movement of funds between the opening and closing dates of the balance Sheet. It is also called the Statement of Sources Of Funds, Movement of funds statement. It is valuable and also helps to determine how the funds are financed.

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