Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are provided in Connect. This material is also available under the Finance link at the company’s website (www.airfranceklm.com).

Required:
1. How does AF classify operating expenses in its income statement? How are these expenses typically classified in a U.S. company income statement?
2. How does AF classify interest paid, interest received, and dividends received in its statement of cash flows? What other alternatives, if any, does the company have for the classification of these items? How are these items classified under U.S. GAAP?