Page 46 - FINAL CFA I SLIDES JUNE 2019 DAY 7
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Session Unit 7:
26. Understanding Cash Flow Statements
LOS 26.b: Describe how non-cash investing and financing activities are reported., p.105
Not reported in cash flow statement e.g.
• Acquire real estate with finance from seller, or
• Debt for equity swaps!
LOS 26.c: Contrast cash flow statements prepared under International Financial Reporting Standards
tanties
(IFRS) and US generally accepted accounting principles (US GAAP)., p.105
Under US GAAP =
Dividend paid out Interest paid out Dividend received Interest received All taxes paid
Financing activity Operating activity Operating activity Operating activity Operating activity
Under IFRS =
Dividend paid out Interest paid out Dividend received Interest received All taxes paid
Operating or Operating or Operating or Operating or Operating activity except the tax
Financing activity Financing activity Investing activity Investing activity expense is associated with I/F
activity
