When preparing a statement of cash flows,IFRS allows companies to report cash outflows from interest payments as either operating or financing cash flows,while U.S.GAAP requires these outflows to be reported as only operating activities.

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According to IFRS, cash outflows from interest payments can be reported as either operating or financing cash flows, while under US GAAP or Generally Accepted Accounting Principles, these outflows are required to be reported as only operating activities.

When Preparing a Statement of Cash Flows,IFRS Allows Companies to Report