MENGAPA KAS BERBEDA: PERBANDINGAN LAPORAN ARUS KAS METODE LANGSUNG VS. TIDAK LANGSUNG DAN IMPLIKASINYA PER SEKTOR

Abstract

This study aims to analyze the comparison of information Quality of Financial Reporting between the Direct Method (DM) and the Indirect Method (IM) in presenting Operating Cash Flow (OCF) and to examine the impact of Net Income and inventory changes as explanatory factors for cash differences in a sectoral case study. The research combines a comparative qualitative review of accounting standards and user preferences with a quantitative analysis (multiple linear regression) of financial statements from the food and beverage sector companies during the 2016-2018 period. The results indicate a significant gap between standard recommendations and actual practice: the Direct Method is recommended and preferred by users because it provides superior, more relevant information for predictive purposes, while the vast majority of companies (nearly 99.9%) practically adopt the Indirect Method for reasons of efficiency and cost. Fundamentally, Net Income is proven to be a significant predictor of future Operating Cash Flow, which explains why accrual-based profit must be reconciled to derive cash flow. Sectoral implications confirm that Net Income has a significant effect, but the partial effect of changes in inventory (as a key accrual component) was found to be insignificant, although both variables are significantly influential simultaneously.