In the 2014 operating section of its IFRS-based statement of cash flows, European retailer Carrefour reported the following (in millions of euros):
Net income ...............................................................2,010
Depreciation and amortization ..............................1,451
Change in provisions and impairment ..................(175)
Gain on sale of assets ..............................................(355)
Cash flow from operations ....................................2,504
a. Describe the basic form of the entries recorded by Carrefour related to the three adjustments listed above to the operating section of the statement of cash flows.
b. Explain why these amounts appear on the statement of cash flows, and why depreciation and amortization is a positive number while the gain on the sale of assets is a negative number.
c. Where on the statement of cash flows could you find the proceeds from the sales of assets?
d. If Carrefour followed U.S. GAAP instead of IFRS, would you expect to see similar adjustments to the operating section of the statement of cash flows?