Page 47 - FINAL CFA I SLIDES JUNE 2019 DAY 7
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Session Unit 7:
26. Understanding Cash Flow Statements
LOS 26.d: Distinguish between the direct and indirect methods of presenting cash from operating
activities and describe arguments in favor of each method., p. 107
tanties
Adv. Provides useful link
Adv. Presents to income statement for
full amounts and doing cash flows
useful for forecasting better than
estimating and direct method and not
recommended recommended by US
by US GAAP and GAAP/IFRS!
IFRS
