Both ASC 230 (US GAAP) and IAS 7 (IFRS) split cash flows into operating, investing, and financing. US GAAP is prescriptive about where interest and dividends go; IFRS gives a policy choice — so the same flows can land in different sections.
| Area | US GAAP (ASC 230) | IFRS (IAS 7) |
|---|---|---|
| Interest paid / received | Operating | Policy choice — operating or investing/financing |
| Dividends received | Operating | Policy choice — operating or investing |
| Dividends paid | Financing | Policy choice — operating or financing |
| Bank overdrafts | Financing | May be part of cash and cash equivalents (if repayable on demand) |
| Method | Direct or indirect (direct encouraged) | Direct or indirect |
The classification flexibility under IFRS is the main comparability item — apply the chosen policy consistently.
An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult ASC 230 / IAS 7 directly.