Consider the following propositions:

• 1) Under US GAAP, dividends received, interest paid or received can be classified as operating, investing, or financing cash flows, provided that the treatment is consistent.
• 2) Under IFRS, dividends received, interest paid or received must be treated as operating cash flows.

What is a correct characterization of these two propositions?

A) Both 1 and 2 are true.

B) 1 is true but 2 is false.

C) 1 is false but 2 is true.

D) Both 1 and 2 are false.