CFAI EOC Integrating Financial Statements q 15 net, understand, financing, remember

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Please Help
I understand in this question that the reason they have not added back interest expense to the net income. However they said that Bickchip reports under IFRS.
First q
Where in the question does it state that Bickchip reports under IFRS.
Second q
R they saying that once u report under IFRS then interest is classified as a financing activity and hence it is not added back to CFO. This might have been in L1 some where but I did that in 2k8 and really cannot remember. Please verify/clarify