单选题

The following items are from a company's cash flow statement.

Classification of cash flow	Description	Amount(£000s)
Operating activities	Cash received from customers	55,000
Investing activities	Interest and dividends received	10,000
Financing activities	Net repayment of revolving credit loan	12,000

Which of the following standards and formats did the company most likely use in the preparation of its financial statements?

A、 IFRS, direct format
B、 IFRS, indirect format
C、 Either IFRS or U.S. GAAP, direct format

【正确答案】 A

【答案解析】

A is correct. The direct method of cash flow statement presentation shows the specific cash inflows and outflows that result in reported cash flow from operating activities (cash from customers, cash to suppliers, etc.). Companies using IFRS can decide to report interest and dividend receipts as either an investing or operating activity, whereas under U.S. GAAP, they must report such income as an operating activity. The listed operating and investment activities indicate that the company reports under IFRS, using the direct method.