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A Critical Study Concerning The Preparation Of The Statement Of Cash Flows Through The Indirect Method In Romania

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  • TARAN-MOROSAN Adrian

    (Lucian Blaga University of Sibiu, Romania)

Abstract

Although not bound by law, by option, small and medium entities from Romania can prepare the statement for the modifications within their equity and / or the statement of cash flows. When companies select this option, any decision made by the consumer of accounting information is better founded, from the perspective of information sources that it uses, rather than the opposite, because the users of accounting information about a company are almost always interested by the way in which the company generates and uses cash and cash equivalents. In this paper we present the particularities implied in Romania by the preparation of the statement of cash flows using the indirect method.

Suggested Citation

  • TARAN-MOROSAN Adrian, 2012. "A Critical Study Concerning The Preparation Of The Statement Of Cash Flows Through The Indirect Method In Romania," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 7(2), pages 194-210, August.
    • Handle: RePEc:blg:journl:v:7:y:2012:i:2:p:194-210
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    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/7215taran.pdf
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    References listed on IDEAS

    as
    1. Michael Bradbury, 2011. "Direct or Indirect Cash Flow Statements?," Australian Accounting Review, CPA Australia, vol. 21(2), pages 124-130, June.
    2. Gopal V. Krishnan & James A. Largay III, 2000. "The Predictive Ability of Direct Method Cash Flow Information," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(1‐2), pages 215-245, January.
    3. Gopal V. Krishnan & James A. Largay III, 2000. "The Predictive Ability of Direct Method Cash Flow Information," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(1&2), pages 215-245.
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