Indirect method: Difference between revisions
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''Cashflow statements''. | |||
In relation to a Cashflow statement, starting with a reported profit/(loss) figure and then adjusting it to calculate the net cash movement. | 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 the main categories of gross cash receipts and payments explicitly.) | (The alternative Direct method of presentation shows all the main categories of gross cash receipts and payments explicitly.) | ||
The indirect method is more widely used in external financial reporting. | The indirect method is more widely used in external financial reporting. | ||
Revision as of 17:33, 3 December 2020
Cashflow statements.
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 of presentation shows all the main categories of gross cash receipts and payments explicitly.)
The indirect method is more widely used in external financial reporting.
