Kindly revert back, in case you find my answer satisfactory or more better. Thanks!!!!!!
Fund flow statement is referred as sources and application of funds. It helps in showing detailed revenue received from sources and the amount of money used by the business for many purposes in that Financial Year.
This statement provides addition information which is not generally covered in company's financial statement of accounts (profit and loss account and company's balance sheet).
Fund Flow Statement and Cash Flow Statement are the important instruments to examine, study and understand the financial statement of accounts.
There are many differences between Fund and Cash Flow statement.
The importance ones are outlined below:
1) Fund flow statement is the difference between the total value of Current Assets and Current Liabilities or Net Working Capital. Whereas the cash flow statement is a summary of or receipts or payment [cash] for the period which is in Income Statement.
2) In cash flow statement, there is no format or any statement is required to prepare it. While in fund flow statement, a statement of changes in current asset and current liabilities is required.
3) Fund flow statement is prepared on the basis of Fund or while cash flow statement is based on cash.
4) By preparing cash flow statement, it allows the bank or shareholders of the company about the company prospective and its business. Fund flow statement is prepared actions of the company.
3rd question :
Fund from operation refers to the fund or losses, which is created or sustain loss in the business in the regular operations during each Financial Year.
Both are referred as source and application of funds. Here source is referred to Fund from operation and application is referred as loss from operations.
To arrive the fund from operations, you need to first arrive the net profit and thereafter add any non-operating or non cash expenses (such as Depreciation, goodwill, preliminary expenses) and deduct the non operating income (such as gain on sale of fixed assets, interest received, or refund of taxes if any).