During 20X0, the Southampton Shipping Company, a company reporting under IFRS, refinanced its long-term debt. It spent £165,000 to retire long-term debt due in 2 years and issued £180,000 of 15-year bonds (£ signifies pound, the UK monetary unit). It then bought and retired common shares for cash of £35,000. Interest expense for 20X0 was £23,000, of which it paid £22,000 in cash; the other £1,000 was still payable at the end of the year. Dividends declared and paid during the year were £11,000.

Prepare a statement of cash flows from financing activities. Discuss the treatment of interest expense under IFRS compared with U.S. GAAP.