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What is the useful way in prepairing the statement of cash flow the direct or the indirect way ?

the indirect way is the most popular in contracting companies . but what about the direct way which starts with the revenue ?

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Question added by Mahmoud Saeed Mahmoud Abdulaziz , Division Account Manager , Issam Kabbani & Partners
Date Posted: 2014/01/28
Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

The Indirect Method

The indirect method is preferred by most firms because is shows a reconciliation from reported net income to cash provided by operations

Nasser albalkhi
by Nasser albalkhi , General Manager , 7points

Budget break down then loaded to primavera

NILA REJESH ACA
by NILA REJESH ACA , Auditor , SAJEEV & AJITH CHARTERED ACCOUNTANTS

INDIRECT METHOD

Mohammad Ibrahim, CMA, CertIFR
by Mohammad Ibrahim, CMA, CertIFR , Accounting Operation Team Leader , KFH ( Kuwait Finance House )

both method are usefull and maintaining same result at end , But the Differences between two method is in Presentation of ( net Cash Flow From Operating Activities ) : the Direct method require presenting all gross payment ( receivable & Payable ) , But the Indirect Method Make Reconciliation for Net Income .

the Indirect Method is most popular in use .

when reporting Statement Of Cash Flow Using The indirect method , you must declare of Payment Of ( Interest & Taxes ).

But When Reporting SCF using Direct Method , You need to show the reconciliation between net income & net Cash Flow , because this Indirect Method is popular .

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