Indirect Versus Direct Method of Preparing the Statement of Cash Flows: Which Method Enhances the Understandability and Relevance of Cash Flows Information to Users?

Authors

  • Anil J N Shukla Adjunct Associate Professor, Division of Accounting, Nanyang Business School, Nanyang Technological University, Singapore Author
  • Lau Chew King Senior Lecturer, Division of Accounting, Nanyang Business School, Nanyang Technological University, Singapore Author

DOI:

https://doi.org/10.47363/JESMR/2023(4)170

Keywords:

Cash Flows, Indirect Versus, Statement

Abstract

The International Accounting Standards Board (IASB) proposed several amendments to International Accounting Standards 7 (IAS 7) in December 2019. One of the proposed amendments is to allow companies to continue with the choice between Direct Method (DM) and Indirect Method (IM) in the presentation of the statement of cash flows (SCF).

Author Biographies

  • Anil J N Shukla, Adjunct Associate Professor, Division of Accounting, Nanyang Business School, Nanyang Technological University, Singapore

    Adjunct Associate Professor, Division of Accounting, Nanyang Business School, Nanyang Technological University, Singapore

  • Lau Chew King, Senior Lecturer, Division of Accounting, Nanyang Business School, Nanyang Technological University, Singapore

    Senior Lecturer, Division of Accounting, Nanyang Business School, Nanyang Technological University, Singapore

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Published

2023-02-13

Issue

Vol. 4 No. 1 (2023): Volume 4 Issue 1

Section

Articles