What are the differences between Fund Flow Statement and Cash Flow Statement

Fund flow statement: It is a statement which shows application of funds and sources of funds of two financial years.

Cash Flow statement: It is a statement which shows the changes of opening and closing of cash balances in a particular year.

Point of differences	Fund Flow statement	Cash Flow statement
Meaning of Cash flow statement and Fund flow statement	It shows application of funds and sources of funds of two financial years.	It shows inflow and outflow of cash balances in a particular year.
Accounting method used in Cash flow statement and fund flow statement	It uses accrual basis of accounting method in which expenses and income are recorded in statement when expenses occurred and income earned not at the time when cash is received or expenses are paid.	It uses cash basis of accounting method to record transactions in statement when cash is receive and when expenses are paid.
Are the fund flow statement and cash flow statement part of financial statement?	Fund flow statement is not a part of financial statement like profit and loss a/c and balance sheet.	Cash flow statement is a part of financial statement like profit and loss a/c and balance sheet.
Time period of fund flow statement and cash flow statement	When fund flow statement is preparing it consider 2 financial years.	Cash flow statement is prepared for particular period.
Changes consider in fund flow statement and cash flow statement	It considers the changes in working capital in two financial years.	It considers the changes in opening and closing balances of cash and cash equivalents.
Transactions are recorded in fund flow statement and cash flow statement	It record the transactions related to sources of fund and application of funds like issuing shares, long term investment,	It records the transactions which are related to investing activities, operating activities and financial activities.

Format of cash flow statement:

Particulars	Amount
Cash flow from operating activities:
Net profit before tax and extraordinary items	-------
Adjustments: Interest paid	-----
Interest received	(-----)
Depreciation	------
loss on sale of fixed assets	-----
Gain on sale of fixed assets	(-----)
Operating profit before change in working capital
Add: increase in current liabilities	------
Decrease in current assets	------
Less: Increase in current assets	------
Decrease in current liabilities	------
Cash from operating activities
Income tax paid	(-----)
Cash before extra ordinary items
+ or – extra ordinary items	------
Net cash flow from operating activities (A)
Net cash flow from investing activities (B)
Net cash flows from financing activities (C)
Net increase or decrease in cash and cash equivalent (A+B+C)
Cash and cash equivalent at the beginning of the year
Cash and cash equivalent at the end of the year

Direct method:

Particulars	Amount
Cash flow from operating activities:
Cash sales	-----
Cash receives from operating activities	------
Cash paid to employees, suppliers	(------)
Income tax paid	(------)
Cash before extra ordinary items
+ or – extra ordinary items
Net cash flows from operating activities (A)
Net cash flows from investing activities (B)
Net cash flows from financing activities (C)
Net increase or decrease in cash and cash equivalent (A+B+C)
Cash and cash equivalent at the beginning of the year
Cash and cash equivalent at the end of the year

Format of fund flow statement:

Source of funds	Application of funds
Issue of share capital	Payment of fixed assets
Debenture	Payment of borrowings
Long term borrowing	Payment of tax
Sale of fixed assets	Payment of dividend
Fund from business operation	Loss from business operation
Decrease in working capital	Increase in working capital