CERTYNEX IFRS ACADEMY

An equipment supplier agrees that Corbris pays for a 1.1 million production line by directly assuming the bank debt that financed it (case data). What effect on Corbris's statement?

Investing outflow of 1.1 million on acquisition, the production line being paid for by taking over the debt.

No flow on acquisition; disclosure elsewhere; later debt repayments will be financing flows.

Financing inflow of 1.1 million, taking over the debt amounting to obtaining a new loan.

Operating outflow of 1.1 million, the equipment being used directly in the production activity.