How is conversion of debt reported?

CFA Level I
#1

Is it a supplementary schedule or CFF??

#2

Depends… Material conversions will always be noted in the notes to the F/S. If it is a plain-vanilla conversation (i.e. there is no cash involved) it won’t hit the CF stmt. If there is a cost to the conversation (like an option) the cash received will hit CFF.

#3

i remember this one confusing me… i can’t quite remember - i think i said supplementary, no hittin the CF

#4

agreed - supplementary. there is no impact to cash flow.