11/08/2025
💡 Direct Cash Flow under IFRS – Why 98% Use Indirect Method
Under IAS 7, cash flow shows where money really moves:
• Operating 💼 – core business cash in/out
• Investing 🏗 – buying/selling assets
• Financing 💳 – loans, shares, dividends
IFRS encourages the Direct Method (list actual cash received/paid), but 98%+ of companies use the Indirect Method because it’s faster to prepare from accrual accounts and doesn’t require tracking every cash transaction.
📊 Key takeaway: Whatever method you choose, positive operating cash flow is the heartbeat of a healthy business.