|
Dr. Epstein served as the lead author of 14 annual editions of Wiley IFRS (1997 through 2010), and 26 annual editions of Wiley GAAP (1985 through 2010), all published by John Wiley & Sons.
|
|
|
 |
| |
Statement of Cash Flow
IFRS versus GAAP
Listed below are some of the major differences for Statements of Cash Flow between International Financial Reporting Standards (IFRS) and U.S. GAAP. This material is excerpted from Wiley IFRS 2010: Interpretation and Application of International Financial Reporting Standards.
|
IFRS Statement of Cash Flow |
GAAP Statement of Cash Flow |
|
Required for most entities, but limited exemptions exist
|
Required for all reporting entities |
|
Direct and indirect methods for operating cash flows permitted, direct is urged but rarely seen
|
Direct and indirect methods for operating cash flows permitted |
| Interest paid and dividends received must be classified as operating cash flows, and dividends paid must be classified as financing cash flows |
Choice allowed in classifying:
1.Dividends and interest paid or received as operating cash flows, or
2.Interest or dividends paid as financing cash flows and interest or dividends received as investing cash flows
|
|
Overdrafts cannot be included in cash (show as financing source of cash)
|
Overdrafts can be included in cash under de-fined conditions |
|
Reconsideration of cash flow reporting will occur in later stage of financial reporting joint project with IASB
|
Reconsideration of cash flow reporting will occur in later stage of financial reporting joint project with FASB |
Contact IFRS accounting expert Dr. Barry Epstein, CPA for more information. He can be reached at BEpstein@SSandG.com or 312-464-3520.
|
|
