Evaluate two (2) major differences between GAAP and IFRS with respect to the statement of cash flows

• Imagine you are the senior accountant at your organization and management is unsure of the difference between the indirect method and the direct method of preparing a statement of cash flows. Outline a brief memo to management differentiating between the direct method and indirect method. Advise management on which method the company should use to prepare the statement of cash flows. Provide at least two (2) specific examples on why the method you selected would be beneficial to the company

Solution Preview

There are major distinctions involved in using cash flows with the guidance of the GAAP and the IFRS. While using the GAAP, elements of a transaction are categorized inclusively on the foundation of the foremost origin of the cash flows (Camfferman and Zeff, 2015). However,………………………………..