Chapter 21, Problem 21.12BYP

IFRS Case 21–10

Statement of cash flows presentation, British Telecommunications

• LO21–3 through LO21–6, LO21–9

IFRS

Real World Financials

British Telecommunications Plc (BT), a U.K. company, is the world’s oldest communications company. The company prepares its financial statements in accordance with International Financial Reporting Standards. Locate BT’s statement of cash flows from it’s website at www.btplc.com.

Required:

1. What are the primary classifications into which BT’s cash inflows and cash outflows are separated? Is this classification the same as or different from cash flow statements prepared in accordance with U.S. GAAP?

2. How are cash inflows from dividends and interest and cash outflows for dividends and interest classified in BT’s cash flow statements? Is this classification the same as or different from cash flow statements prepared in accordance with U.S. GAAP?