Statement of changes in financial position
Open-knowledge reference entry
In business accounting, the statement of change in financial position is a financial statement that outlines the sources and uses of funds and explains any changes in cash or working capital. There is no single, agreed-upon definition, but all are about comparative value of each cash statement.
About
It contains activities from operations that alter the cash of a company has on hand. Changes in financial position include cash outflows, such as capital expenditures, and cash inflows, such as revenue. It may also include certain non-cash changes, such as depreciation.
The use of this statement is to provide relevant and focused on a period, so that users of financial statements with sufficient information to:
Evaluate the company’s ability to generate resources.
Assess the reasons for the differences between net income and funds generated or used by the operation.
To assess the ability of the company to meet its obligations to pay dividends, and if necessary, to anticipate the need for funding.
To assess the changes in the company’s financial situation arising from investing and financing transactions that occurred during the period.
Vis-a-vis balance sheet
The basic financial statement shows the resources generated or used in the operation, the main changes in the financial structure of the entity and its final reflection on cash and cash equivalents through a period of time.
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The citation trail is more important than the brevity of the summary: it shows where individual claims can be examined in context. The source revision retrieved here is dated Jul 2, 2026. The linked authority identifier is Q7603965. The Library of Congress control number is sh85052370. 1 of 1 selected statements include explicit references; 0 carry qualifiers and 0 use preferred rank.
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This entry incorporates text from “Statement of changes in financial position” on English Wikipedia. Contributors are listed in the page history. Text is available under the Creative Commons Attribution-ShareAlike 4.0 License. Selected authority identifiers and statements are retrieved from Wikidata under CC0; their references and qualifiers remain part of the verification path.