Go to the International Financial Reporting Standards (IFRS) Website to review authoritative guidance of the statement of cash flows, located at http://www.ifrs.org. To find literature on authoritative guidance, in the search engine type in “statement of cash flows” Be prepared to discuss.
“Statement of Cash Flows” Please respond to the following:
- Compare the major similarities and differences between IFRS and GAAP in regard to authoritative guidance of the statement of cash flows. Identify two (2) differences in IFRS and GAAP, and suggest to the IFRS board which GAAP technique it should implement. Explain the primary way in which the differences you selected will benefit financial statement users.
- Compare and contrast each of the types of financial statements: balance sheet, income statement, and statement of cash flows. Give your opinion of the statement that is most useful to creditors. Provide at least two (2) specific examples of such usefulness to creditors.