Chapter 4, Problem 4.19E

The format of financial statements varies from country to country. The FASB and IASB propose that financial statements in the future be organized using the same format currently used in the statement of cash flows-operating, investing, and financing activities. This would greatly change the current format used to prepare the income statement and the balance sheet. Required: 1. Explain the differences among operating, investing, and financing activities. You might want to refer back to the first section in Chapter 11 on the statement of cash flows.

Briefly describe the types of information concerningfinancial position, income, and cash flows that might beprovided (a) within the main body of the financial statements,(b) in the notes to the financial statements, or (c) assupplementary information.

Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine the specific citation for accounting for each of the following items: 1. Disclosure of interest and income taxes paid if the indirect method is used. 2. Primary objectives of a statement of cash flows. 3. Disclosure of noncash investing and financing activities.