Under IFRS, how can a company classify interest paid, and what flexibility does this provide compared to GAAP?

• A. Interest paid can be classified as either an operating or financing activity, providing more flexibility than GAAP.
• B. Interest paid can be classified as an investing activity, which is not allowed under GAAP.
• C. Interest paid can only be classified as an operating activity, similar to GAAP.
• D. Interest paid must be classified as a financing activity, unlike GAAP.

Answer: (A)