The IASB recommends that the operating section of the statement of cash flows be reported using the direct method.

Name: The IASB recommends that the operating section of the statement of cash flows be reported using the direct method.
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The IASB recommends the use of the direct method to report the operating section of the statement of cash flows, although the indirect method is also acceptable. However, many companies still prefer to use the indirect method due to its ease of use and lower costs.

The IASB Recommends That the Operating Section of the Statement