CFF CFO CFI

CFA Level I FRA
#1

Hi all,

Is there a good way to understand and remember - in US GAAP dividends received are operating cash flows, dividends paid are financing

In IFRS we have other set of rules such as interest received may be classified as CFO or CFI

The point is I always tend to forget and get confused during mock exam. Any suggestions how to remember these.

Thanks,

Saurabh

#2

Most US GAAP categorizations of cash flows are sensible, with the exception of dividends received and interest paid. IFRS gives sensible options on some cash flows.

I’m not sure how best to remember the differences. Maybe write them down 20 times or so.

#3

Thanks!

#4

You’re welcome.

Best of luck!