Bank overdrafts are considered to be a reduction of cash under IFRS, but not under U.S. GAAP.

Name: Bank overdrafts are considered to be a reduction of cash under IFRS, but not under U.S. GAAP.
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Under IFRS, bank overdrafts can be considered a component of cash and cash equivalents if they are repayable on demand and form an integral part of an entity's cash management. In contrast, U.S. GAAP treats bank overdrafts as a liability and not as a reduction of cash.

Bank Overdrafts Are Considered to Be a Reduction of Cash