Direct method: Difference between revisions
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The indirect method is more widely used in external financial reporting. | The indirect method is more widely used in external financial reporting. | ||
== See also == | == See also == | ||
Revision as of 13:44, 6 May 2016
In relation to a Cashflow statement, the Direct method shows all categories of receipts and payments explicitly.
Contrasted with the Indirect method, which starts with a reported profit/(loss) figure and then adjusts it to calculate the net cash movement.
The indirect method is more widely used in external financial reporting.
