Problem
Presentation of Financial Statements Problem #2Charlie Tuna, CEO of Star Kissed Corporation (SKC), visits you as his accountant to discuss the classification of interest and dividends in SKC's statement of cash flows. SKC currently reports using U.S. GAAP but is considering adopting IFRS. For its current fiscal year, SKC has interest received of $500, interest paid of $1,250, dividends received of $200, and dividends paid of $2,700.Charlie asks you if, under IFRS, SKC can continue to classify its interest and dividend amounts in the statement of cash flows consistent with its classification under U.S. GAAP.
Required: Provide a response to the question asked by SKC's CEO.