Abstract
Chapter 12 is concerned with the preparation and interpretation of the ‘Statement of Source and Application of Funds’ (Funds Flow Statement). Since SSAP 10 was issued in 1975 UK companies have been required to publish this statement as part of their annual report. The statement is intended to demonstrate, for an accounting period, how a business’s activities were financed, and how these resources were used. The information necessary for the preparation of the statement can usually be derived from the information in the profit and loss account and balance sheet. However, as we shall see, the Source and Application of Funds Statement presents the information in a way which adds to the understanding of the data in the other two financial statements.
Preview
Unable to display preview. Download preview PDF.
Notes and References
ED 54 ‘Cash flow statements’ issued by the Accounting Standards Committee in July 1990 proposed the adoption of cash flows as the basis for a new standard which would be developed to replace SSAP 10.
See, for example, the Marks and Spencer Source and Application of Funds in Appendix B.
It cannot, of course, be assumed that all past trends can be extrapolated into the future; they must be interpreted in the context of other available information.
Copyright information
© 1991 Arthur Hindmarch and Mary Simpson
About this chapter
Cite this chapter
Hindmarch, A., Simpson, M. (1991). Statement of Source and Application of Funds. In: Financial Accounting: An Introduction. Palgrave, London. https://doi.org/10.1007/978-1-349-21765-6_12
Download citation
DOI: https://doi.org/10.1007/978-1-349-21765-6_12
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-54731-1
Online ISBN: 978-1-349-21765-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)