Direct method

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Revision as of 19:24, 9 November 2013 by imported>Doug Williamson (Categorise page.)
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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.

See also