C contrast cash flow statements prepared under International Financial Reporting Standards (IFRS) and U.S. generally accepted accounting principles (U.S. GAAP);

Question 1

USGAAP Div paid on CFstmt

Answer 1

Report on CFF

Question 2

USGAAP Int paid on CFstmt, and Int received, dividends recieved

Answer 2

Report on CFO

Question 3

IFRS Int n Div recieved, paid

Answer 3

CFO or CFF

Diff: US GAAP isn’t so flexible

Question 4

US GAAP and taxes

Answer 4

Report all as CFO

Question 5

IFRS and taxes

Answer 5

Report CFO unless the expense is associated with an investing or financing transaction

Question 6

US GAAP tax EX v IFRS tax EX

Answer 6

Sell land held for investment for 1 mil

Inc. Tax on sale = 160k

USGAAP: Inflow of cash from investing activities 1 mil CFI = 1 mil, outflow CFO 160K

IFRS: Net inflow 840k from investing activities