Indirect Cash Flow Method. A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash flowing into ...

Allocation of Indirect Costs Using the PCM Method of Accounting By Alan Li , Contributor Percentage-of-completion is the most common method used for construction revenues.

The indirect method begins with net income from the income statement, ... Under the accrual method of accounting, revenue is recognized when earned, not necessarily when cash is received.

The article should have derived the discount rate by use of the weighted average cost of capital (WACC) if the indirect method was to be used, and the income stream should have been before interest ...

This case is especially important for advisers of passthrough entities, in which the individual owners report flowthrough income. Practitioners and advisers need to be aware of how direct changes of ...