Reporting changes in financial position;

              OPINIONS OF THE ACCOUNTING PRINCIPLES BOARD
Reporting Changes in Financial Position
In view of the broadened concept of the Funds Statement adopted in this Opinion, the Board has recommended that the title of the statement be changed to "Statement of Changes in Financial Position."
INTRODUCTION
1. In 1963 the Accounting Principles Board issued Opinion No. 3, The Statement of Source and Application of Funds. Support of that Opinion by the principal stock exchanges and its acceptance by the business community have resulted in a significant increase in the number of companies that present a statement of sources and uses of funds (funds statement) in annual financial reports to shareholders. Several regulatory agencies have acted recently to require funds statements in cer-tain reports filed with them.
2. APB Opinion No. 3 encouraged but did not require pre-sentation of a funds statement. In view of the present wide-spread recognition of the usefulness of information on sources and uses of funds, the Board has considered whether presenta-tion of such a statement should be required to complement the income statement and the balance sheet. APB Opinion No. 3 also offered considerable latitude as to form and content of funds statements, and practice has varied widely. The Board has therefore also considered establishing guides for presenting such statements.
Issued by the Accounting Principles Board of the American Institute of Certified Public Accountants
COPYRIGHT 1971 BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC.
666 FIFTH AVENUE, NEW YORK, NEW YORK 10019
MARCH 1971
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