When preparing the statement of cash flows, IFRS will allow companies to classify some cash flows classified as investing or financing activities under U.S. GAAP as operating activities under IFRS.

Question

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Under IFRS, companies have more flexibility in classifying interest and dividends received or paid, which can be classified as operating, investing, or financing activities, unlike U.S. GAAP which has stricter classifications.

When Preparing the Statement of Cash Flows, IFRS Will Allow