Indirect method

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 for a period.

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Contrasted with the alternative Direct method of presentation which shows all the main categories of gross cash receipts and payments explicitly.

The indirect method is more widely used in external financial reporting.

See also

• Cashflow statement
• Direct method
• Financial reporting
• Reconciliation