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Module VI· Cash Flow Statement MechanicsIntermediate
Question

How do you treat debt issuance and repayment in CFS financing cash flow?

Answer

Debt issuance is a financing cash inflow. Debt repayment is a financing cash outflow. Interest paid is usually operating under IFRS or US GAAP presentation choices, but debt principal movements are financing. Link issuance and repayment to the debt schedule so ending debt on the balance sheet reconciles.

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