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ERIC Number: EJ1058294
Record Type: Journal
Publication Date: 2010
Pages: 14
Abstractor: As Provided
Reference Count: 3
ISBN: N/A
ISSN: ISSN-1942-2504
A Conceptual Framework for the Indirect Method of Reporting Net Cash Flow from Operating Activities
Wang, Ting J.
American Journal of Business Education, v3 n12 p19-32 2010
This paper describes the fundamental concept of the reconciliation behind the indirect method of the statement of cash flows. A conceptual framework is presented to demonstrate how accrual and cash-basis accounting methods relate to each other and to illustrate the concept of reconciling these two accounting methods. The conceptual framework recognizes additional categories of effects defined in the Accounting Standards Codification 230-10-45-28 and International Accounting Standards 7.18 (Statement of Financial Accounting Standards No. 95) in regard to the indirect method, which makes the concept of reconciliation between the accrual- and cash-basis more thorough and complete. The paper provides an approach to teaching the concept of the reconciliation of accrual and cash-based accounting methods.
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A