这句话是什么意思？为什么不是C?

问题如下：

Question

A Europe-based telecommunications provider follows International Financial Reporting Standards (IFRS) and capitalizes new product development costs. During 2014, it spent €25 million on new product development and reported an amortization expense related to a prior year’s new product development of €10 million. The company’s cash flow from operations was €290 million.

An analyst is comparing the European company with a US-based telecommunications provider and has decided to adjust its financial statements to US GAAP. Under US GAAP, ignoring tax effects, the cash flow from operations for the European company would be closest to:

选项：

A.€265 million. B.€290 million. C.€275 million.

解释：

Solution

A is correct. US GAAP requires that both research and development costs be expensed as incurred. Cash flow from operations would be lower by the amount spent on development: €290 million – €25 million = €265 million. The amortization of previous development costs is a non-cash expense, so it does not affect cash flow.

B is incorrect. It assumes cash flow is not affected by accounting policies and hence would stay the same.

C is incorrect. It adds back the amortization: 290 – 25 + 10 = 275 million.