In the operating section of its IFRS-based statement of cash flows, Kyocera, a Japanese telecommunications firm, reported

Question:

In the operating section of its IFRS-based statement of cash flows, Kyocera, a Japanese telecommunications firm, reported the following (in millions of yen):
Net income .................. 298,040
Depreciation and amortization ........... 985,626
Loss on impairment of PP&E and intangibles ..... 27,576
Gain on sale of PP&E and intangibles ....... (83,980)
Net cash provided by operating activities ..... 987,818
a. Describe the basic form of the entries recorded by Kyocera related to the three adjustments listed above to the operating section of the statement of cash flows.
b. Explain why these amounts appear on the statement of cash flows, and why depreciation and amortization and the loss on impairment of PP&E and intangibles are positive numbers, while the gain on the sale of PP&E and intangibles is a negative number.
c. Where on the statement of cash flows could you find the proceeds from the sales of PP&E and intangibles?
d. If Kyocera followed U.S. instead of IFRS, would you expect to see similar adjustments to the operating section of the statement of cash flows?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...