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The statement of cash flows

3.2 Indirect method

The indirect method reconciles profit before tax (as reported in the statement of profit
or loss) with the cash generated from operations as follows:

$ $

Profit before tax X
Depreciation charge for the period X

(Profit) or Loss on disposal of non-current assets (X)/X
Finance costs X

Investment income (X)
(Increase)/Decrease in inventories (X)/X

(Increase)/Decrease in receivables (X)/X
Increase/(Decrease) in payables X/(X) X

––––– –––––

Cash generated from operations X

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