IRR and Indirect method: Difference between pages

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.

@@ Line 1: / Line 1: @@
-''Project appraisal - discounted cash flow.''
+''Cashflow statements''.
-Internal Rate of Return.
+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.
 == See also ==
-* [[Discounted cash flow]]
+* [[Cashflow statement]]
-* [[Internal rate of return]]
+* [[Direct method]]
-* [[Net present value]]
+* [[Financial reporting]]
-* [[Project appraisal]]
-[[Category:Corporate_finance]]
+[[Category:Accounting,_tax_and_regulation]]
-[[Category:Investment]]
+[[Category:Cash_management]]
-[[Category:Long_term_funding]]