Indirect method

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Revision as of 11:09, 24 December 2020 by imported>Doug Williamson (Amend wording)
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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.


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