Cash flow from Financing

CFA Level I
#1

They say :- Principal Amount of debt issued as CFF inflow ,

If It is issued for premium then the premium amount will go to _____________?

If it is issued as Discount then from where the discount amount will come ______________?

Or we have to enter the net amount we receive?

Thanks

#2

I’ve never seen this issue raised before.

I’d count the entire amount – principal plus any premium, or principal less any discount – as a CFF inflow.

It won’t appear on the CFA exam.

#3

Thanks for the confirmation

In Schweser It is written as Principal Amount of debt issued as CFF inflow. So just asked the doubt arised in my mind as I am very sensitive to the WORDS that are used . If in place of the word ‘Principal’ they would have used the word ‘Proceeds’ then there would not be any confusion.

Thnxx by the way

#4

You’re quite welcome.