Indirect Method

A method for creating a statement of cash flows a company may use during any given reporting period. The indirect method uses accrual accounting information to present the cash flows from the operations section of the cash flow statement.

Under both the direct and indirect methods the remaining two sections of the cash flow statement, cash provided from investing and financing activities will be identical.

The indirect method uses accounting information, instead of actual cash inflow and outflow data, the internal information is readily available and may be easier to implement. Since a company is most likely required to report its financial information to an outside party, regardless if the company is publicly held or not, the accrual accounting information will be readily available.


Investment dictionary. . 2012.

Look at other dictionaries:

  • indirect method — The method used for a cash flow statement in which the operating profit is adjusted for non cash charges and credits to reconcile it with the net cash flow from operating activities …   Accounting dictionary

  • indirect method — The method used for a cash flow statement in which the operating profit is adjusted for non cash charges and credits to reconcile it with the net cash flow from operating activities …   Big dictionary of business and management

  • indirect method — ophthalmoscopy that uses a high diopter condensing lens to form an image of the retina anterior to the eye …   Medical dictionary

  • indirect method of measurement — netiesioginio matavimo metodas statusas T sritis Standartizacija ir metrologija apibrėžtis Matavimo metodas, kai dydžio vertė nustatoma remiantis matavimų rezultatais, gautais taikant su matuojamuoju dydžiu žinoma priklausomybe susijusių kitų… …   Penkiakalbis aiškinamasis metrologijos terminų žodynas

  • indirect method of measurement — netiesioginio matavimo metodas statusas T sritis fizika atitikmenys: angl. indirect method of measurement vok. indirekte Meßmethode, f; indirektes Meßverfahren, n rus. метод косвенного измерения, m pranc. méthode de mesure indirecte, f …   Fizikos terminų žodynas

  • indirect method of difference — a method of scientific induction devised by J. S. Mill according to which if two or more instances in which a phenomenon occurs have only a single circumstance in common and two or more instances in which it does not occur have nothing in common… …   Useful english dictionary

  • Косвенный метод (отчет о движении денежных средств) (INDIRECT METHOD (STATEMENT OF CASH FLOWS))  — Метод представления потоков денежных средств от операционной деятельности, при котором чистая прибыль или убыток корректируется с учетом результатов операций неденежного характера, любых отсрочек или начислений прошлых периодов или будущих… …   Словарь терминов по управленческому учету

  • method — noun ADJECTIVE ▪ accurate, effective, efficient, good, practical, reliable, tried and tested (esp. BrE), tried and true (esp. AmE) ▪ Which method is …   Collocations dictionary

  • method of difference — a method of scientific induction devised by J. S. Mill according to which if an instance in which the phenomenon under investigation occurs and an instance in which it does not occur have each circumstance except one in common, that one occurring …   Useful english dictionary

  • Indirect fire — means aiming and firing a projectile in a high trajectory without relying on a direct line of sight between the gun and its target, as in the case of direct fire. Aiming is performed by calculating azimuth and elevation angles, and may include… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.