Chapter 4 The Income Statement and Statement of Cash Flows5

Chapter 4 The Income Statement and Statement of Cash Flows5

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 4-20 There are two possible separately reported items that could appear in income statements, discontinued operations and extraordinary items. International Financial Reporting Standards (IFRS) prohibit reporting extraordinary items. Question 4-21 IFRS provides the option of presenting components of other comprehensive income either in (a) a single statement of comprehensive income or (b) in a separate income statement followed by a statement of comprehensive income. U.S. GAAP also allows the reporting of other comprehensive income in the statement of shareholders’ equity
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Question 4-22 U.S. GAAP designates cash outflows for interest payments and cash inflows from interest and dividends received as operating cash flows. Dividends paid to shareholders are classified as financing cash flows. IFRS allows more flexibility. Companies can report interest and dividends paid as either operating or financing cash flows and interest and dividends received as either operating or investing cash flows. Interest and dividend payments usually are reported as financing activities. Interest and dividends received normally are classified as investing activities...
View Full Document

This note was uploaded on 01/08/2011 for the course COMM 140x taught by Professor Carver during the Spring '10 term at USC.

Ask a homework question - tutors are online