Most companies elect to report the cash flow statement according the indirect method. An indirect cash flow statement is a peculiar thing. When properly implemented, it is a great instrument to control corporate performance and validate the accuracy of reported income statement and balance sheet data. When poorly implemented, it is a labor intense exercise to prepare with mostly limited value for management. A well-designed cash flow model builds off of a relevant analysis of balance sheet movements, where movements are duly separated between cash relevant movements and non-cash relevant movements. The latter in turn can be separated into amounts posted in income statement, amounts posted in other comprehensive income, and amounts posted in other sections of the balance sheet. Making sure that the logical accounting relations between income statement, balance sheet and cash flow statement are properly reflected makes the difference between a consolidated cash flow statement that is prepared with a push of the button, versus one that takes many days to prepare. Let alone keeping it in sync with any late adjustments.