When preparing a statement of cash flows,IFRS allows companies to report cash outflows from interest payments as either operating or financing cash flows,while U.S.GAAP requires these outflows to be reported as only operating activities.

Question

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IFRS allows flexibility in reporting interest payments as operating or financing cash flows, whereas U.S. GAAP requires interest payments to be reported only as operating activities.

When Preparing a Statement of Cash Flows,IFRS Allows Companies to Report