Question

For nonfinancial firms reporting using IFRS rules, which of the following is correct? Multiple Choice In most cases, cash flows from income taxes must be reported separately as an operating activity. Firms using the direct method must provide a schedule reconciling net income to cash flows from operating activities. Interest and dividends paid may be reported as either operating or investing activities. Bank overdrafts repayable on demand used as part of normal cash management activities must include those overdrafts as part of financing activities.

Answer 1

For nonfinancial firms reporting using IFRS rules, which of the following is correct is given below

Explanation:

• IFRS is to provide a global framework for how public companies prepare and disclose their financial statements.

• IFRS provides general guidance for the preparation of financial statements, rather than setting rules for industry-specific reporting.

• List of International Financial Reporting Standards (IFRS)

• IFRS 12-Disclosure of Interests in Other Entities

• IFRS 13=Fair Value Measurement

• IFRS 14-Regulatory Deferral Accounts

• IFRS 15-Revenue from Contracts with Customers

• IFRS Standards bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.

• Understanding International Financial Reporting Standards (IFRS) IFRS are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. ... GAAP has been called "the gold standard" of accounting.

• IFRSs apply to the general purpose financial statements and other financial reporting by profit-oriented entities – those engaged in commercial, industrial, financial, and similar activities, regardless of their legal form. ... IFRS apply to individual company and consolidated financial statements.