These links explain it all
http://www.equitymaster.com/detail.asp?date=5/13/2005&story=3
http://www.investopedia.com/articles/fundamental/03/091703.asp
What is to be debated is the formats which keep changing and are old wine in new bottles. Now balance sheets in India have also started reporting cashflow statements by which one can detect frauds associated with accrual accounting. The cash flow statements show cash from operations and cash used in investing and financing activities. Earlier it used to report only cash and bank transactions and later statement of changes in working capital. I recently came across a statement called statement of changes in owners equity which is just a variation of the funds flow statement with only balance sheet items. This may also be worth a look:-
http://www.investopedia.com/articles/04/033104.asp
http://www.equitymaster.com/detail.asp?date=5/13/2005&story=3
http://www.investopedia.com/articles/fundamental/03/091703.asp
What is to be debated is the formats which keep changing and are old wine in new bottles. Now balance sheets in India have also started reporting cashflow statements by which one can detect frauds associated with accrual accounting. The cash flow statements show cash from operations and cash used in investing and financing activities. Earlier it used to report only cash and bank transactions and later statement of changes in working capital. I recently came across a statement called statement of changes in owners equity which is just a variation of the funds flow statement with only balance sheet items. This may also be worth a look:-
http://www.investopedia.com/articles/04/033104.asp
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