Which of the following properly represents the preparation of the statement of cash flows prepared using IFRS rules?

Multiple Choice

• The presentation of the statement of cash flows is the same for all companies preparing statements under IFRS.

• The flexibility provided under IFRS guidance for the preparation of the statement of cash flows increases the comparability of results between companies.

• Firms using the direct method are not required to provide a reconciliation of net income to cash flows from operations.

• The presentation of the statement of cash flows differs to those following U.S. GAAP as a result of prescribed classification differences under IFRS.