A company issues common stock to purchase land. How is this significant non-cash transaction reported under GAAP and IFRS?

• A. Both GAAP and IFRS disclose it in the notes to the financial statements.
• B. Under GAAP, it is disclosed in the notes; under IFRS, it is reported in the cash flow statement.
• C. Both GAAP and IFRS report it in the cash flow statement.
• D. Under GAAP, it is reported in the cash flow statement; under IFRS, it is disclosed in the notes to the financial statements.

Answer: (D)