The comparison between the statements of cash flows is done with reference to FASB statement 95 which deals with the preparation and presentation of the statement and the statement of cash flows prepared by Anglo American plc using UK GAAP.
The first and foremost difference which is most significant is the classification of cash inflows and cash outflows. Statement 95 of the FASB describes that a statement of cash flows should be prepared classifying the inflows and outflows in three different areas which are cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. The standard also explains which items have to be disclosed in the statement of cash flows in these areas (FASB, 1987). The statement of cash flows prepared under UK GAAP on the other hand does not directly include cash flows from operating activities in the statement but rather includes it in the notes to the financial statements.
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