Indirect method: Difference between revisions
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* [[Cashflow statement]] | * [[Cashflow statement]] | ||
* [[Direct method]] | * [[Direct method]] | ||
[[Category:Cash_management]] | |||
Revision as of 19:24, 9 November 2013
In relation to a Cashflow statement, starting with a reported profit/(loss) figure and then adjusting it to calculate the net cash movement.
(The alternative Direct method shows all categories of receipts and payments explicitly.)
The indirect method is more widely used in external financial reporting.
