Direct method: Difference between revisions
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* [[Cashflow statement]] | * [[Cashflow statement]] | ||
* [[Indirect method]] | * [[Indirect method]] | ||
[[Category:Cash_management]] | |||
Revision as of 19:24, 9 November 2013
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.
