Document ID: chunk:federal_register_of_legislation:F2025C00209:front:0:p20
Version: federal_register_of_legislation:F2025C00209
Segment Type: other
Provision Reference: 
Character Range: 58228–61472

maturities are short.
      1.                     Examples of cash receipts and payments referred to in paragraph 75(a) are:
           1.                    the acceptance and repayment of demand deposits of a bank;
           2.                    funds held for customers by an investment entity; and
           3.                    rents collected on behalf of, and paid over to, the owners of properties.
      1.                     Examples of cash receipts and payments referred to in paragraph 75(b) are advances made for, and the repayment of:
           1.                    principal amounts relating to credit card customers;
           2.                    the purchase and sale of investments; and
           3.                    other short-term borrowings, for example, those which have a maturity period of three months or less.
      1.                     Cash flows arising from each of the following activities of a financial institution may be reported on a net basis:
           1.                    cash receipts and payments for the acceptance and repayment of deposits with a fixed maturity date;
           2.                    the placement of deposits with and withdrawal of deposits from other financial institutions; and
          (c) cash advances and loans made to customers and the repayment of those advances and loans.

Foreign currency cash flows
      1.                     An entity shall record cash flows arising from transactions in a foreign currency in the entity's functional currency by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the cash flow. Paragraph 40 in AASB 121 explains when an exchange rate that approximates the actual rate can be used. [IFRS for SMEs Standard paragraph 7.11]
      2.                     The entity shall translate cash flows of a foreign subsidiary at the exchange rates between the entity's functional currency and the foreign currency at the dates of the cash flows. [IFRS for SMEs Standard paragraph 7.12]
      3.                     Unrealised gains and losses arising from changes in foreign currency exchange rates are not cash flows. However, to reconcile cash and cash equivalents at the beginning and the end of the period, the effect of exchange rate changes on cash and cash equivalents held or due in a foreign currency must be presented in the statement of cash flows. Consequently, the entity shall remeasure cash and cash equivalents held during the reporting period (such as amounts of foreign currency held and foreign currency bank accounts) at period-end exchange rates. The entity shall present the resulting unrealised gain or loss separately from cash flows from operating, investing and financing activities. [IFRS for SMEs Standard paragraph 7.13]

Interest and dividends
      1.                     An entity shall present separately cash flows from interest and dividends received and paid. The entity shall classify cash flows consistently from period to period as operating, investing or financing activities. [IFRS for SMEs Standard paragraph 7.14]
      2.                     An entity may classify interest paid and interest and dividends