Filigree Corporation prepares its financial statements in
accordance with IFRS. Filigree acquired equipment by issuing
5,000 shares of its common stock. How should this transaction
be reported on the statement of cash flows?
(d) The requirement is to identify how the transaction
should be reported on the statement of cash flows. Answer (d) is
correct because this transaction did not involve an exchange of
cash; therefore, it is not included on the statement of cash flows.
IFRS requires that significant noncash transactions be reported
in the notes to the financial statements. (Note that for US
GAAP, if there are only a few significant noncash transactions,
they may be reported at the bottom of the statement of cash
flows, or they may be reported in a separate schedule in the notes
to the financial statements.)