What is the difference between ASPE and IFRS for the SCF?

• Dividends paid must be classified as a financing activity.
• Interest received and paid, and dividends received must be classified in operating activities. There is no choice of alternate classification
• All of these are differences between ASPE and IFRS for the SCF.
• Information regarding cash flow for interest, and cash paid for income tax, is accomplished through a disclosure note.

An item not typically reported in the income from continuing operations section of an income statement is:

• Discontinued activity for an operating segment.
• Sales returns and allowances.
• Cost of goods sold.
• Interest on long term debt.

What is a concern with allowing presentation choice in the SCF?

• Management should base its decision for classifying interest and dividends on whether or not the payment is conceptually an operating item, or if it is more appropriately presented as investing or financing.
• Financial statements may not be comparable to competitors and analysts will have to proceed with caution when benchmarking.
• All of these are concerns with allowing presentation choices in the SCF.
• Management might pick classifications to portray a particular impression of operating cash flows, or other key reporting metrics.

Which of the following is a pervasive constraint of financial reporting?

• Understandability
• Materiality
• Timeliness
• Faithful representation