Indirect method


Also found in: Medical.

Indirect method

Reporting in the statement of cash flow that adjusts or reconciles net income to cash from operations.

Indirect Method

A measure of a company's cash flow. It is calculated by taking the company's net income and making a series of adjustments based on accounting conventions. The indirect method may be easier to calculate than netting cash inflows and cash outflows since companies required to report their accounting to an independent agency should have all the tools needed to use the indirect method.
References in periodicals archive ?
Using indirect methods gives the ruling mullahs an advantage, and lowers the risk and cost.
They yielded different and even contradictory results, probably due to the indirect method employed (Table 4).
A majority of financial analysts surveyed by the CFA Institute agreed that presenting operating cash flows using the direct method better enables them to forecast future cash flows of an entity than the indirect method (CFA Institute Member Poll: Cash Flow Survey, July 2009).
Researchers (like Hendrickson, 1984; Ferris and Roberts, 2001; Ferris, 2002) too suggest that for learners at early age it is more useful to apply the direct method as compared to indirect method of CF.
In the early the last century, Donaldson (1915) showed the importance of direct methods for analyzing the partition of body weight and indirect methods with wider applicability in vivo.
Kroeker said, "I'd challenge you to look at the changes we're making for not-for-profits that would eliminate the use of the indirect method of cash flows.
Specifically, in the laboratory we combined these two approaches as an indirect method to estimate the length and biomass of willow twigs removed by simulated (clipping) moose browsing.
nfx43-050general environment "air quality - indirect method .
The transition from the indirect method to the direct method is familiar to financial executives at public colleges and universities, which underwent a similar change following the issuance in 1999 of GASB Statement No.
This indirect method of cooling allows for airflows to be reduced to zero without any risk of frost damage.
The usual methods attempted include the polite method, the demanding method, the bribery method, the direct method, the indirect method, the angry method, the manipulative method, and a whole host of others.