Asked by caglar gokbulut on Jun 09, 2024
Verified
Under U.S.GAAP,cash interest from investments is reported on the statement of cash flows as part of investing activities whereas under IFRS,cash interest from investments is reported as part of financing activities.
Cash Interest
Interest payments made in cash on a debt obligation over a specific period.
U.S.GAAP
United States Generally Accepted Accounting Principles, which are a set of rules and guidelines designed to improve the clarity, consistency, and comparability of financial reporting in the U.S.
IFRS
International Financial Reporting Standards, a set of global accounting standards developed by the International Accounting Standards Board (IASB) for financial reporting.
- Differentiate the practices of accounting treatments and financial reporting between US GAAP and IFRS, specifically in terms of cash flow reporting.
Verified Answer
Learning Objectives
- Differentiate the practices of accounting treatments and financial reporting between US GAAP and IFRS, specifically in terms of cash flow reporting.
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