GAAP is similar to IFRS. Both include cash and highly liquid short-term investments with maturities generally of three months or less. Although under IFRS, cash and cash equivalents may include bank overdrafts. Under US GAAP, restricted cash is not included in cash and cash equivalents, although its variation is presented in investing activities. Under US GAAP, when a receipt or payment has characteristics of more than one cash flow category, it is classified based on the predominant source of the cash flow, whereas under IFRS a company should classify each individual component of a transaction separately as operational. , investments or financing. Both US GAAP and IFRS classify cash flows into three categories: operating, investing, and financing activities, although US GAAP includes more specific guidance on the classification of certain transactions.