Cash Flow: What It Is, Why Its Important, and How to Calculate It

An April 2024 amendment to IFRS introduces a requirement to use the operating profit subtotal as the starting point for the indirect method. This change affects annual periods starting on or after 01 January 2027. It’s optimal for businesses using the cash basis accounting method, especially those following IFRS. This section of the statement shows how much cash the company generates from buying or selling investments or assets. Formula: Zions […]