From the beginning of the Financial Accounting Standards Board’s cash flow project 20 years ago, users expressed a strong preference for the direct method so that they could analyze the gross amounts ...

Direct Vs. Indirect Cash Flow Method. A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash ...

Direct method: This method draws data from the income statement using cash receipts and cash disbursements from operating activities. The net of the two values is the operating cash flow.

If FASB follows through with its plan to mandate a direct-method cash flow statement for not-for-profit entities, experts say financial statement preparers would be wise to address implementation ...

Under any accounting system there are timing factors and nuances of IRS rules that guide and direct – or confuse and obscure - when revenue is recognized and when taxes must be paid.

Steven F. Orpurt, Yoonseok Zang, Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows and Earnings?, The Accounting Review, Vol. 84, No. 3 (MAY 2009), pp. 893-935 ...

This case is especially important for advisers of passthrough entities, in which the individual owners report flowthrough income. Practitioners and advisers need to be aware of how direct changes of ...