Flow-Through Method

Flow-Through Method
System used in presenting financial statements to shareholders. Here, straight-line depreciation is used for shareholder reporting and accelerated depreciation is used for tax purposes. Lower income taxes paid are ‘flowed thru’ in the statements.

Related posts:

  1. Accelerated Depreciation
  2. Cash Flow after Interest and Taxes
  3. Normalizing Method
  4. ACRS- Accelerated Cost Recovery System
  5. Cash Flow Coverage Ratio

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