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

Question

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IFRS allows flexibility in reporting interest and dividends received as operating or investing cash flows, while US GAAP requires them to be classified only as operating activities.

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