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Chapter 17
Indirect method
(1) Start with PBT x
(2) Strip out non-operating impacts from PBT
Finance cost x
Investment income (x)
(3) Strip out non-cash impacts from PBT
Gain or loss on disposal of PPE (x)/x
Depreciation x
Impairment x
(4) Deal with working capital movements
Increase/decrease in inventory (x)/x
Increase/decrease in trade receivables (x)/x
Increase/decrease in trade payables x/(x)
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Cash generated from operations x/(x)
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