Explanation:
Under IFRS, interest expense can be classified as either an operating or a financing cash flow. When classified as a financing cash flow, reported operating cash flows are higher. In contrast, impairment losses must be classified as operating cash flows (Option A), and dividends paid can be classified as either operating or financing, but when classified as operating, reported operating cash flows are lower (Option B).
Under International Financial Reporting Standards (IFRS), which classification choice is most likely to increase reported operating cash flows?
A
Impairment losses on fixed assets.
B
Dividends paid.
C
Interest expense.
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