what is fund flow statement

A fund flow statement is a financial document that shows the inflow and outflow of funds or assets for a company over a specific time period. It is used to analyze changes in the financial position of a business when comparing two balance sheets and to reveal the reasons for these changes. Fund flow statements are important for financial analysts to assess the fund flow of an organization in the near future and to develop a better strategy for long-term financial planning. The statement can also reveal whether an organization is earning a profit or sustaining a loss, and it can indicate a decrease in working capital. Fund flow statements are different from cash flow statements, which show the inflow and outflow of actual cash. While the fund flow statement was required by GAAP between 1971 and 1987, much of the information it provided is now captured in the statement of cash flow. However, the fund flow statement is still useful in investing to gauge investor sentiment as it relates to different asset classes. Investors can find information about fund flow from information aggregators like Morningstar and investment research firms.