Choice "D" is correct. Under IFRS, interest (and dividends) received may be reported in either operating cash flow or in investing cash flow. Under U.S. GAAP, interest (and dividends) received must be reported in operating cash flow because interest (and dividend) income is reported on the income statement.
Choice "b" is incorrect. Under U.S. GAAP, not IFRS, interest received must be reported only in operating cash flow because interest income is reported on the income statement.
Choice "c" is incorrect. Under IFRS, interest received is reported in either operating cash flow or in investing cash flow.
Choice "a" is incorrect. Interest is received from investments, not from financing activities. Therefore, interest received is never reported in financing cash flow.
