If A Company Issues Stocks Or Bonds To Pay Outstanding Debt, Should This Non Cash Transaction Be Included In The Cash Flow Statement?
If a company issues stocks or bonds for cash and then pays off the debt, the transaction is reported in the financing section of the statement of cash flows.If the transaction is a direct conversion of debt to equity (shares of stock) or debt to bonds and no cash receipts or cash payments occur, the transaction is to be disclosed as supplementary information.
