Given the complexities related to preparing and interpreting
the statement of cash flow, evaluate the current requirement under GAAP
and IFRS, indicating improvements that you would make to each method’s
requirement to better serve the users of the information. Provide a
rationale for your changes. Analyze the impact of erroneous
classifications in the Operating Activities section of the statement of
cash flows, detailing how the distortion can impact the decisions made
by financial statement users. Suggest how these errors may be
minimized.
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