Statement of Cash Flows — ASC 230 vs IAS 7

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.

• Classification policy for interest and dividends (IFRS) — and consistency.
• Cash equivalents definition and overdraft treatment.
• Non-cash transactions disclosure.

• SAP implementation: cash flow statement via SAP Group Reporting / financial statement versions — write-up forthcoming under SAP & Enterprise Systems.

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.