Ch 23 IFRS Insights

Question 0

GAAP VS IFRS: cash and cash equivalents

Answer 0

Both account for changes in cash and cash equivalents

Definition of cash equivalents is similar between both
IFRS and GAAP

Question 1

GAAP VS IFRS: preparation of statement of cashflows

Answer 1

Both require preparation of statement of cashflows

Question 2

IFRS VS GAAP: 3 major sections

Answer 2

Both have 3 major sections: operating, investing, financing

Question 3

IFRS VS GAAP: indirect and direct methods

Answer 3

Both are permitted under both IFRS and GAAP

both mostly use the indirect method

Question 4

IFRS VS GAAP: bank overdrafts

Answer 4

Under GAAP classified as financing activities

Under IFRS considered part of cash and cash equivalents

Question 5

IFRS VS GAAP: non cash activities

Answer 5

IFRS: disclosed in notes of financial statements

GAAP: may disclose information in cash flow statement

Question 6

IFRS VS GAAP: classification of interest, dividends and taxes

Answer 6

IFRS provides more alternatives for disclosing these items

GAAP classifies dividends paid as a financing activity
And both interest and taxes as operating activities