PROBLEMATIC ASPECTS OF THE INDIRECT METHOD OF ANALYSIS OF CASH FLOW
The international finance statement standards provide two formats of information of cash flows presentation: direct and indirect. Each statement can be analyzed by means of a horizontal and vertical comparative analysis. In Russia, two methods of analysis of the statement of cash flows – direct and indirect – are used. The essence of the problem is that the format of reporting information on cash flow (or the method of report compilation) cannot act as the method of its analysis, and vice versa. It is recommended to consider the «indirect» method of analysis as the economic analysis (vertical and horizontal) of the statement of cash flows prepared by means of the indirect method. The article presents a practical example of the analysis of the cash flow statement of the conventional organization formed by the direct and indirect methods
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