[GNC] Miscalculation in cashflow reports

[Adrien Monteleone]

> On Jul 30, 2019, at 10:57 AM, Adrien Monteleone <adrien.monteleone at lusfiber.net> wrote:
> 
> 
> What I have found so far, is that certainly the Operations section will contain several adjustments to account for anything accrued or transacted in credit as opposed to cash. (i.e., changes to AR/AP, Inventory, Depreciation, Unearned Revenue, Accrued Expenses, Deferred Taxes, Stock Disbursement Compensation, etc.)

This is only for the ‘indirect method’ of calculating the Operations section.

There is also a ‘direct method’ which is allowed by GAAP(though GAAP requires the indirect schedule also) and strongly recommended by IAS. (though IAS allows either method)

I’ll detail both methods when I add more. I suspect the Direct Method will be easier to accomplish with GnuCash and more likely to be more useful to an individual or cash -basis SMB. The Indirect Method will require calculation code from the Income Statement and Balance Sheet since the workflow pulls figures from those reports.

Regards,
Adrien