In Schweser exam 1 afternoon question 90, the contributions were 5000 and total periodic pension costs 4250. This means the firm reduces its overall pension obligation by 750. The question is what adjustments should be made to the cashflow, going from IFRS to GAAP. In GAAP all pension costs are reported under operating, while in IFRS principal payments in financing. So we need to adjust the financing and operating cash flow to convert from IFRS to GAAP. The correct answer is increase operating cashflow by 750 and decrease financing cashflow by 750. My question is, why is it not the other way around, i.e. reducing operating cash flow by 750, and increasing financing cash flow by 750?