IAS 7 vs.

FAS 95

versus
Direct or indirect Direct or indirect
format format
Operating Operating
Financing Financing
Investing Investing
Noncash financing Noncash financing
and investing activities and investing activities
must be disclosed must be disclosed –
elsewhere – not on generally in notes
the face of the SCF

Reconciliation of cash
and cash equivalents
to balance sheet
 Transaction US GAAP IFRS
Classification Classification
Interest Received Operating Operating or
Investing

Dividends Received Operating Operating or

Investing

Interest Paid Operating Financing or

Operating

Dividends Paid Financing Financing or

Operating

Income Taxes Operating Operating unless

specifically
associated with
financing or
investing activity
For each of the following, indicate how the transaction should
be classified under both US GAAP and IFRS
Cash Flow Transaction US GAAP IFRS
Interest Received operating Operating or investing
Borrowed Long Term Debt financing financing

Paid dividends financing Financing or operating

Paid suppliers for goods operating operating
Sold land investing investing
Receipt from sale of goods operating operating

Paid interest operating Financing or operating

Received dividends operating Operating or investing

 For each of the following, indicate how the transaction
should be classified under both US GAAP and IFRS
Cash Flow Transaction US GAAP IFRS
Interest Received on
borrowings for Land
investment
Borrowed Long Term Debt
to supplement operations
Paid interest on
borrowings associated
with building a new
manufacturing plant
Received dividends on
trading securties