One area of difference between GAAP and IFRS cash flow reporting is the
A) treatment of losses on sale of equipment.
B) general categories required for various types of cash flows.
C) use of the direct or indirect method of reporting operating cash flows.
D) allowed classifications of dividends and interest paid or received.

Question

Quizplus · Accepted Answer

Under IFRS, companies have more flexibility in classifying dividends and interest paid or received in either operating, investing, or financing activities, whereas GAAP has more specific requirements for these items.

One Area of Difference Between GAAP and IFRS Cash Flow