Statement of Changes in

Financial Position (SCFP)

A statement summarizes;
• Changes in Assets and Liabilities resulting
from financial and investment
transactions during the period.
• The way in which the firm has used its
financial resources. (e.g. to acquire fixed
assets, payment of debt, to pay dividend.
etc.)
 Most common form of SCFP

1. Statement of Sources and Uses of Funds

(Fund Flow Statement )
2. Cash Flow statement
SCFP can be prepared by comparing figures of
Balance Sheet items at two different dates.
PARTICULARS 2005 2006 Change
Cash 54 135 + 81
Stock 101 226 +125
Fixed Assets
297 607 +310
Total
452 968 516
Liabilities
Creditors 83 218 +135
Long Term debt 100 200 +100
Share Capital 200 300 +100
Retained Earnings
69 250 +181
Total
452 968 516
 Working Capital
Working Capital= CA –CL

Change in WC = WC 2006 – WC 2005

WC 2005 =Total CA 2005- Total CL 2005
WC 2006 =Total CA 2006- Total CL 2006
2006 - 2005
(361-218) – (155-83)
143 – 72
Increase in NWC = 71
 Change in NCA & NCL

Working Capital= NCA –NCL

WC 2005 =NCA 2005-NCL2005
WC 2006 = NCA 2006- NCL 2006
2006 2005
(750-607) - ( 369- 297 )
143 - 72
Increase in NWC = 71
 Sources of working Capital
Adjusted Net Loss
• Purchase of Non-Current Assets
• Purchase of Intangible Assets
• Repayment of Long term Debts
• Redemption of Pref. Capital
• Payment of Cash Dividend.
 Funds From Operations
FFO=
Net Profit
+ Non fund Expenses
- Gain from sale of NCA
+ Loss on sale of NCA
 Uses of working Capital
1. Funds From Operations
2. Sale of Non-Current Assets
3. Sale of Intangible Assets
4. Raising Long term Debts
5. Raising Share Capital
 Working Capital
Liabilities Assets

Current Liabilities
Current Assets

Non Current Liabilities

Non Current Assets

CA – CL = NCL - NCA