The Funds Statement as an Internal Report to Management.

Abstract This article focuses on the funds statement as an internal report to management. making financial decisions. Sixty-four per cent of the companies using the funds statement as an internal report, or 123 companies, stated that they have used funds statements of past periods as aids in making current financial decisions. Sixty-eight per cent of the companies using the funds statement as an internal report, or 131 companies, have used projected funds statements as aids to decision-making. Of these companies, 94 stated that they have used both historical and projected funds statements. The majority of the companies using the funds statement as an internal statement and tool for decision-making regard it as strictly a short-term tool. Companies using the funds statement as an internal tool of management attempted to reconcile it with the various budgets or other anticipatory statements in many cases. Seventy-five per cent of the companies that reported that they used the funds statement for making financial decisions tied the funds statements in with one or more of their budgets.