Cash flow from Financing

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Ankit Sharma

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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
 
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.
 
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
 
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