When preparing the Statement of Cash flows for health care entities the direct method is only required for governmental health care organizations. It is acceptable to use the direct method for private not for profit organizations, but not required.
Private sectors can be either use direct or indirect method and they are just like FASB cash flow that uses three different categories (CFO,CFI,CFF). However, public sectors require to use direct method and requires four different categories (CFO,CFF-non capital, CFF-capital, CFI).
When preparing the Statement of Cash flows for health care entities the direct method is only required for governmental health care organizations. It is acceptable to use the direct method for private not for profit organizations, but not required.
ReplyDeletePrivate sectors can be either use direct or indirect method and they are just like FASB cash flow that uses three different categories (CFO,CFI,CFF). However, public sectors require to use direct method and requires four different categories (CFO,CFF-non capital, CFF-capital, CFI).
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