| Topic : Funding & finance in construction planning and management |
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Manufacturing & Engineering Professionals |
Construction Planning & Management |
Finance & Accounts |
5 more ...
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Activity:
Question posted: 02 19 2010 06:39:46 +0000,
7 answers, 520 views, last activity
04 10 2011 13:51:41 +0000
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fund flow & cash flow
Cash Flow deals with Movement of Cash. Opening Balance +/- Cash related Transaction=closing balance. It does not consider Depeciation and other such items. It generally estimates how much cash is required for a period. Cash Flows are drawn monthly, weekly, quarterly depending upon the industry and cash management requirements.
Funds Flow deals with overall use of funds and includes changes in working capital also. It is mainly used to check whether short tem fund are used for long term applications (an unhealthy sign) or Long term funds are used for short term applications (healthy sign)
"Cash flow is a daily chart taken by limited firms for the usage in account closing" to show in share markets,Eg:buyers and sellers"Fund flow is allocation of amount for a project maintained and accounted at the closing year"Eg:budget value
S.Lakshmi Narasimhan(Senior Accountant/Cost Controller)
Manarah Al Jubail Construction Company,Saudi Arabia.
Cash Flow statement is showing changes Inflow and Outflow of cash during the period.Fund Flow Statement is showing the Source and Application of Funds During the Period.
The cash flow allows investors to under stand how acompany's operations are running,where its money is coming from,and how it is being spent.
The Fund Flow is showing the fund for the future activities of the company.
Cash Flow Statement shows the movement of Cash i.e shows the sources of cash and where has it been applied. Fund Flow Statement shows the movement of working capital. It shows sources and application of funds. It better shows internal accruals of an entity. Method has been already told above by Mr. Suryanarayan Murthy.
Fund flow statement- (FFS) Statement showing the source and application of the funds during the period.
Cash flow statement- (CFS) Statement showing changes in inflow and outflow of cash during the period.
Major differences-
The CFS allows the investors to understand how a Company's operations are running , where's its money is comming from , and how it is being spent.
The FFS is showing the fund for the future activities / tasks of the Company.
As Mr. Murty said, Cash Flow deals with the cash required for a period to maintain the organisation smoothly. If it is a small organisation the requirement can be for a week and the planning depends on the size of the organisation.
Funds Flow deals with the items that can be converted into cash in shorter duration to meet any emergency situation as well as for the investment. It assess the availability of such funds which can be converted into cash. It is nothing but manipulation (I should not call it as manipulation just for understanding purpose I call it as) of Working capital.
The manjor difference between fund flow and cash flow is Fund FLow is capital amount received towards the project, where as cash flow the capital amount spent towards the project. F
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wat does fund flow n cash flow statement mean,, wat is the diff betw fund flow n cash flow statement |
wat is the diff between finance and accounts |