Cash flows from operation: Relative usefulness of the direct method over the indirect method
The study focuses on users’ perceptions regarding the usefulness of the direct and the indirect method of reporting cash flow statement. The aim of the study is to investigate the perceived usefulness of the two methods by examining the structures of users’ perceptions, the differences existed in th...
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| Format: | Thesis |
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2001
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| Summary: | The study focuses on users’ perceptions regarding the usefulness of the direct and the indirect method of reporting cash flow statement. The aim of the study is to investigate the perceived usefulness of the two methods by examining the structures of users’ perceptions, the differences existed in their perceptions, and the relationship between the perceived usefulness and the method employed. Two perspectives are adopted (communication and decision-making) to determine the five dimensions underlying users’ perception of usefulness. The dimensions are: communication aspects, ability to make investment and credit decisions, new information content, improved understanding, and cost-benefit aspects. |
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